IC23 APPLICATIONS OF LIFE INSURANCE - 24
| Q1.Which involves transferring the risk burden to another party, typically by means of a contract and an example of this is insurance? |
| a) Risk reduction |
| b) Risk retention |
| c) Risk transfer |
| d) Risk avoidance |
| Q2.Does that mean the copy of a will certified under the seal of a court of competent jurisdiction with a grant of administration to the estate of the testator? |
| a) Probate |
| b) Executor |
| c) Will |
| d) Administrator |
| Q3.Which loss means financial loss due to the happenings of direct loss of the property? |
| a) Direct Loss |
| b) Personal risks |
| c) Consequential loss |
| d) None of these |
| Q4. Takaful contract should embody which of the following conditions? |
| a) Specialty condition |
| b) Partnership condition |
| c) Investment condition |
| d) All of the above |
| Q5.Arbitrary amounts such as ___ the salary amount are decided as adequate amounts for insurance. |
| a) 5 times |
| b) 10 times |
| c) 15 times |
| d) 20 times |
| Q6.Which of the statement is false regarding quota share reinsurance? |
| a) The insurer cedes a fixed percentage of premiums and losses for every risk accepted. |
| b) This method is generally not suitable for a small company or a newly established company. |
| c) This type of treaty is more profitable to a reinsurer as the ceding commission is lower. |
| d) None of the above |
| Q7.What refers to if a life insurance policy is owned by the insured, has the advantage of continued control of the policy, and any ownership in the associated cash values of a permanent policy? |
| a) Wills |
| b) Succession certificate |
| c) Ownership considerations |
| d) Naming beneficiaries |
| Q8.UK Money Purchase schemes is also known as _____. |
| a) Defined Contribution scheme |
| b) Company pension schemes |
| c) Company Purchase schemes |
| d) None of these |
| Q9.How many types of Pure risk are there? |
| a) One |
| b) Two |
| c) Three |
| d) Four |
| Q10.What means uncertainty, Hazard and chance of risk and technically it refers to the sale of a thing which is not present at hand, or the sale of a thing whose consequence or outcome is not known, or a sale involving risk or hazard whose details are uncertain, such as fish in the water or a bird in the air? |
| a) Riba |
| b) Gharar |
| c) Maysir |
| d) Haram |