IC23 Mock Test Sample 1
Life insurance and health insurance concepts cover risk management strategies like risk retention when transfer is not possible. Schemes like CGHS and ESI provide social security to specific groups. Regulatory bodies such as RBI and foreign exchange laws govern claim payments to NRIs. Key legal concepts include wills, arbitration, and alteration clauses. Insurance products like term plans, long-term care, and annuities serve different financial needs. Reinsurance helps insurers manage large risks. Financial planning is important at all life stages. Organizations like SEWA support specific groups. Takaful follows Shariah principles. NPS operations involve trustee banks, and tax reforms include the Direct Tax Code.
1. ______ is a good strategy only when it is impossible to transfer the risk.
a) Risk avoidance
b) Risk Reduction
c) Risk transfer
d) Risk Retention
2. CGHS is applicable to which of the following?
(i) Working central government employees
(ii) Retired central government employees
(iii) Governors
a) Only (i) & (iii)
b) Only (ii)
c) Only (iii)
d) All (i), (ii) & (iii)
3. Payment of claim amount to claimants who are non-residents of India is governed by the ____________.
a) Insurance Regulatory and Development Authority
b) Reserve Bank of India
c) Foreign Exchange Control Regulations
d) Both (a) & (b)
4. Which of the following is not an essential characteristic of a will?
a) Legal declaration
b) Disposition of property
c) Death of the testator
d) Irrevocability
5. ___________ is incorporated in the agreement so as to avoid court proceedings.
a) Accounting clause
b) Set off clause
c) Arbitration clause
d) 21%
6. Full form of HMO is ______
a) Human Maintenance Organisation
b) Health Maintenance Organisation
c) Health Maintaining Organisation
d) National Pension System
7. The Employee State Insurance Scheme is applicable to establishments other than power using factories employing ______ people.
a) Five or more
b) Ten or more
c) Fifteen or more
d) Twenty or more
8. Which of the following is true regarding long term care insurance?
a) Suitable for people unable to take care of basic needs
b) Helpful for younger population
c) Not suitable for disabled persons
d) All the above
9. In health protection policies, the HCB grows at ____ per year (max 1.5 times initial benefit).
a) 2%
b) 3%
c) 5%
d) 7%
10. Which of the following statements is true regarding term insurance?
a) Cheapest form of life insurance
b) No survival benefits
c) Offers death benefits
d) All the above
11. Amendments with consent of both parties is possible due to which clause?
a) Arbitration clause
b) Intermediaries clause
c) Alterations clause
d) Accounting clause
12. Which clause defines recovery available to the ceding insurer?
a) Reinstatement Clause
b) Claims Cooperation Clause
c) Loss Occurrence Clause
d) Recoveries Clause
13. To avoid liability after 2 years, insurer must prove ____________.
a) Disclosure was made
b) Disclosure was material
c) Intent to defraud
d) Only (b) & (c)
14. In convertible term policies, conversion can be done _____.
a) Before end of policy
b) Before end of specified conversion period
c) After six months
d) After five years
15. Which is not true regarding takaful investment conditions?
a) Invest only in approved shares
b) Deposits only in Islamic banks
c) Should not invest in Shariah-approved projects
d) All are true
16. SEWA is __________
a) Trade union for farmers
b) Bank for rural development
c) Self-employed women’s association
d) Scheme for senior citizens
17. Why is reinsurance needed?
a) Multiple claims risk
b) Avoid bankruptcy
c) High sum assured cases
d) All the above
18. At _________, adopting budgeting, saving and investing habits is important.
a) Initial stage
b) Prime earning stage
c) Pre-retirement stage
d) Post-retirement stage
19. NPS trust holds account with ____________.
a) State Bank of India
b) Bank of India
c) Union Bank of India
d) Five
20. ____________ is set of rules replacing Income Tax Act.
a) Minor nominee
b) Indirect Tax Code
c) Direct Tax Code
d) Either (a) or (c)
