IC38 Insurance test7

which among following true?. I. Life insurance policies are contracts of indemnity while general insurance policies are contracts of assurance. II. Life insurance policies are contracts of assurance while general insurance policies are contracts of indemnity. III. In case of general insurance the risk event protected against is certain. IV. The certainty of risk event in case of general insurance increases with time.

Which among the following methods is a traditional method that can help determine the insurance needed by an individual?. I. Human Economic Value. II. Life Term Proposition. III. Human Life Value. IV. Future Life Value.

Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people?. I. Young people are mostly dependant. II. Old people can afford to pay more. III. Mortality is related to age. IV. Mortality is inversely related to age.

Which of the below is not an advantage of cash value insurance contracts?. I. Safe and secure investment. II. Inculcates saving discipline. III. Lower yields. IV. Income tax advantages.

Which of the below is an advantage of cash value insurance contracts?. I. Returns subject to corroding effect of inflation. II. Low accumulation in earlier years. III. Lower yields. IV. secure investment.

1.An individual with an aggressive risk profile is likely to follow wealth investment style. I. Consolidation. II. Gifting. III. Accumulation. IV. pending.

Which among the following is a wealth accumulation product?. I.Bank Loans. II. Shares. III. Term Insurance Policy. IV. Savings Bank Account.

Savings can be considered as a composite of two decisions. Choose them from the list below. I. Risk retention and reduced consumption. II. Gifting and accumulation. III. Spending and accumulation. IV. Postponement of consumption and parting with liquidity.

During which stage of life will an individual appreciate past savings the most?. I. Post retirement. II. Earner. III. Learner. IV. Just married.

What is the relation between investment horizon and returns?. I. Both are not related at all. II. Greater the investment horizon the larger the returns. III. Greater the investment horizon the smaller the returns. IV. Greater the investment horizon more tax on the returns.

Which among the following can be categorised under transactional products?. I. Bank deposits. II. Life insurance. III. Shares. IV. Bonds.

Which among the following can be categorised under contingency products?. I. Bank deposits. II. Life insurance. III. Shares. IV. Bonds.

Which of the below can be categorised under wealth accumulation products?. I. Bank deposits. II. Life insurance. III. General insurance. IV. Shares.

-------is a rise in the general level of prices of goods and services in an economy over a period of time. I. Deflation. II. Inflation. III. Stagflation. IV. Hyperinflation.

Which of the below is not a strategy to maximize discretionary income?. I. Debt restructuring. II. Loan transfer. III. Investment restructuring. IV. Insurance purchase.

life insurance pays off a policyholder's mortgage in the event of the person's death. I. Term. II. Mortgage. III. Whole. IV. Endowment.

The the premium paid by you towards your life insurance, the will be the compensation paid to the beneficiary in the event of your death. I. Higher, Higher. II. Lower, Higher. III. Higher, Lower. IV. Faster, Slower.

Which of the below option is correct with regards to a term insurance plan?. I. Term insurance plans come with life-long renewability option. II. All term insurance plans come with a built-in disability rider. III. Term insurance can be bought as a stand-alone policy as well as a rider with another policy. IV. here is no provision in a term insurance plans to convert it into a whole life insurance plan.

In decreasing-term insurance, the premiums paid over time. I. Increase. II. Decrease. III. Remain constant. IV. re returned.

Using the conversion option present in a term policy you can convert the same to . I. Whole life policy. II. Mortgage policy. III. Bank FD. IV. Decreasing term policy.

What is the primary purpose of a life insurance product?. I. Tax rebates. II. Safe investment avenue. III. Protection against the loss of economic value of an individual‟s productive abilities. IV. Wealth accumulation.

Who among the following is best advised to purchase a term plan?. I. An individual who needs money at the end of insurance term. II. An individual who needs insurance and has a high budget. III. An individual who needs insurance but has a low budget. IV. An individual who needs an insurance product that gives high returns.

Which of the below statement is incorrect with regards to decreasing term assurance?. I. Death benefit amount decreases with the term of coverage. II. Premium amount decreases with the term of coverage. III. Premium remains level throughout the term. IV. Mortgage redemption plans are an example of decreasing term assurance plans.

Which of the below statement is correct with regards to endowment assurance plan?. I. It has a death benefit component only. II. It has a survival benefit component only. III. It has both a death benefit as well as a survival component. IV. It is similar to a term plan.

Which of the below is an example of an endowment assurance plan?. I. Mortgage Redemption Plan. II. Credit Life Insurance Plan. III. Money Back Plan. IV. Whole Life Plan.

What does inter-temporal allocation of resources refer to?. I. Postponing allocation of resources until the time is right. II. Allocation of resources over time. III. Temporary allocation of resources. IV. Diversification of resource allocation.

Which among the following is a limitation of traditional life insurance products?. I. Yields on these policies is high. II. Clear and visible method of arriving at surrender value. III. Well defined cash and savings value component. IV. Rate of return is not easy to ascertain.

Where was the Universal Life Policy introduced first?. I. USA. II. Great Britain. III. Germany. IV. France.

Who among the following is most likely to buy variable life insurance?. I. People seeking fixed return. II. People who are risk averse and do not dabble in equity. III. Knowledgeable people comfortable with equity. IV. Young people in general.

Which of the below statement is true regarding ULIP‟s?. I. Value of the units is determined by a formula fixed in advance. II. Investment risk is borne by the insurer. III. ULIP‟s are opaque with regards to their term, expenses and savings components. IV. ULIP‟s are bundled products.

All of the following are characteristics of variable life insurance EXCEPT: I. Flexible premium payments. II. Cash value is not guaranteed. III. Policy owner selects where savings reserve is invested. IV. Minimum Death benefit is guaranteed.

Which of the below is correct with regards to universal life insurance? Statement I: It allows policy owner to vary payments Statement II: Policy owner can earn market based rate of return on cash value. I. I is true. II. II is true. III. I and II are true. IV. I and II are false.

All of the following is true regarding ULIP‟s EXCEPT: I. Unit holder can choose between different kind of funds. II. Life insurer provides guarantee for unit values. III. Units may be purchased by payment of a single premium or via regular premium payments. IV. ULIP policy structure is transparent with regards to the insurance expenses component.

As per IRDAI norms, an insurance company can provide which of the below non-traditional savings life insurance products are permitted in India? Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance Plans. I. I only. II. II only. III. I and II both. IV. Neither I nor II.

What does unbundling of life insurance products refers to?. I. Correlation of life insurance products with bonds. II. Correlation of life insurance products with equities. III. Amalgamation of protection and savings element. IV. Separation of the protection and savings element.

The sum assured under keyman insurance policy is generally linked to which of the following?. I. Keyman income. II. Business profitability. III. Business history. IV. Inflation index.

Mortgage redemption insurance (MRI) can be categorised under . I. Increasing term life assurance. II. Decreasing term life assurance. III. Variable life assurance. IV. Universal life assurance.

Which of the below losses are covered under keyman insurance?. I. Property theft. II. Losses related to the extended period when a key person is unable to work. III. General liability. IV. Losses caused due to errors and omission.

A policy is effected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy becomes payable to the. I. Next of kin. II. Official Trustee of the State. III. Insurer. IV. Insured.

Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are doing their best to go after Mahesh‟s assets. Which of the below assets is beyond the reach of the creditors?. I. Property under Mahesh‟s name. II. Mahesh‟s bank accounts. III. Term life insurance policy purchased under Section 6 of MWP Act. IV. Mutual funds owned by Mahesh.

Which of the below option is true with regards to MWP Act cases? Statement I: Maturity claims cheques are paid to policyholders Statement II: Maturity claims cheques are paid to trustees. I. I is true. II. II is true. III. Both I and II are true. IV. Neither I nor II is true.

Which of the below option is true with regards to MWP act cases? Statement I: Death claims are settled in favour of nominees Statement II: Death claims are settled in favour of trustees. I. I is true. II. II is true. III. Both I and II are true. IV. Neither I nor II is true.

Ajay pays insurance premium for his employees. Which of the below insurance premium will not be treated deductible as compensation paid to employee? Choice I: Health insurance with benefits payable to employee Choice II: Keyman life insurance with benefits payable to Ajay. I. I only. II. II only. III. Both I and II. IV. Neither I nor II.

The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called. I. Security. II. Mortgage. III. Usury. IV. Hypothecation.

Which of the below policy can provide protection to home loan borrowers?. I. Life Insurance. II. Disability Insurance. III. Mortgage Redemption Insurance. IV. General Insurance.

What does the term “premium” denote in relation to an insurance policy?. I. Profit earned by the insurer. II. Price paid by an insured for purchasing the policy. III. Margins of an insurer on a policy. IV. Expenses incurred by an insurer on a policy.

Which of the below is not a factor in determining life insurance premium?. I. Mortality. II. Rebate. III. Reserves. IV. Management expenses.

What is a policy withdrawal?. I. Discontinuation of premium payment by policyholder. II. Surrender of policy in return for acquired surrender value. III. Policy upgrade. IV. Policy downgrade.

Which of the below is one of the ways of defining surplus?. I. Excessive liabilities. II. Excessive turnover. III. Excess value of liabilities over assets. IV. Excess value of assets over liabilities.

Which of the below is not a component of ULIP premiums?. I. Policy allocation charge. II. Investment risk premium. III. Mortality charge. IV. Social security charge.