IC23 Mock Test Sample 10
A policy document is evidence of the contract. Estate planning ensures asset transfer, cost reduction, and productivity incentives. In reinsurance, quota share suits new/small companies (given statement partly incorrect). In Sudan, Takaful refers to life insurance. Social security challenges include poverty and unemployment. Claims must be settled within 30 days. EDLI benefits relate to EPF balance limits. ULIP is most risky. Underwriting clause defines reinsurance terms. Financial tools exclude all listed (tricky). Takaful aims to share risk. HLV is not one-time. Reinsurer accepts risk. HIPAA full form is correct. Superannuation requires 10 years.
1. ______ issued by an insurance company is the evidence of the contract.
a) Prospectus
b) Addendum
c) Application form
d) Policy document
Ans: d) Policy document
2. Benefits of estate planning include ______.
a) Asset transfer to beneficiaries
b) Reduction in costs
c) Incentives to beneficiaries
d) All of the above
Ans: d) All of the above
3. Which statement is true regarding reinsurance?
a) Treaty is non-obligatory
b) Facultative is obligatory
c) Quota share suitable for large companies
d) Quota share reinsurance
Ans: d) Quota share reinsurance (best fit)
4. In Sudan, Takaful refers to Islamic ______ insurance.
a) Health
b) Life
c) Motor
d) Travel
Ans: b) Life
5. Challenges of social security in India are ______.
a) Only (ii) & (iii)
b) Only (i) & (iii)
c) Only (i) & (ii)
d) Only (i), (ii) & (iii)
Ans: c) Only (i) & (ii)
6. Claim settlement period as per IRDA is ______.
a) 21 days
b) 28 days
c) 30 days
d) 45 days
Ans: c) 30 days
7. EDLI scheme benefit is ______.
a) 12 months avg up to ₹35,000
b) ₹35,000 + 15% excess up to ₹60,000
c) 6 months avg up to ₹35,000
d) None of the above
Ans: b) ₹35,000 + 15% excess up to ₹60,000
8. Most risky insurance plan is ______.
a) Whole life
b) Term insurance
c) ULIP
d) Money back
Ans: c) ULIP
9. ______ defines reinsurance terms and retention limits.
a) Original conditions clause
b) Set off clause
c) Arbitration clause
d) Underwriting clause
Ans: d) Underwriting clause
10. Which is NOT a financial tool?
a) Will
b) Succession certificate
c) Life Insurance Trust
d) Bank FD
Ans: d) Bank FD
11. Main objective of Takaful is ______.
a) Spread happiness
b) Secure life
c) Diversify risk among members
d) None
Ans: c) Diversify risk among members
12. Which is NOT true about Human Life Value?
a) Calculates insurance need
b) One-time calculation
c) Helps determine value
d) None
Ans: b) One-time calculation
13. ______ accepts risk from ceding company.
a) Cede
b) Cedent
c) Reinsurer
d) Insurer
Ans: c) Reinsurer
14. Full form of HIPAA is ______.
a) Health Insurance Portability and Accountability Act
b) Health Insurance Practice and Accountability Act
c) Health Insurance Premium and Accountability Act
d) None
Ans: a) Health Insurance Portability and Accountability Act
15. Minimum service for superannuation pension is ______.
a) 10 years
b) 20 years
c) 25 years
d) 30 years
Ans: a) 10 years
16. Succession certificate is granted by ______.
a) Government
b) Bank
c) Court
d) Municipal corporation
Ans: c) Court
17. ______ policy covers accidental death/injury.
a) Long term care
b) UL Health
c) Personal accident
d) Disability income
Ans: c) Personal accident
18. Death within 2 years is called ______.
a) High paid executives
b) Early claim
c) Timely claim
d) Both (a) & (b)
Ans: b) Early claim
19. Problem in death claim settlement is ______.
a) Proof of death
b) Proof of policy
c) Proof of name
d) None
Ans: a) Proof of death
20. If policy document is lost, insurer takes ______.
a) FIR copy
b) Application letter
c) Policy withdrawal form
d) Indemnity bond
Ans: d) Indemnity bond
