IC23 Mock Test Sample 12
Employee contribution is deductible under Section 80C. Reinsurer inspection is allowed via inspection clause (best fit: alterations/error clause context). Retained amount is net retention. Takaful principle excludes liabilities cannot be spread. Variable annuity offers high return with risk. Employer PF contribution limit is 12%. Medical insurance includes all, so none excluded. Assignee statements are all true. Endowment includes money-back policies. HIPAA enacted in 1996. Benefit plan tenure is more than one year. Health insurance advantages are all. Absolute assignment transfers all rights. Limitation period is 3 years.
1. Employees contribution under the Group savings linked insurance plans is deductible under _____________ of Income Tax Act.
a) Section 80C
b) Section 80D
c) Section 80E
d) 15%
2. By which clause reinsurer has the right to inspect books or records of the ceding insurer?
a) Insolvency of other reinsurers clause
b) Errors and omissions clause
c) Alteration clause
d) Inspection clause
3. The amount retained by the insurer is called as ___________.
a) Gross retention
b) Pre-determined retention
c) Insured retention
d) Net retention
4. Which of the following is not a principle of Takaful?
a) Losses are divided
b) Liabilities cannot be spread
c) Uncertainty is eliminated
d) Policyholders cooperate among themselves
5. __________ offer an annuitant the chance to earn a high return with higher risk.
a) Variable annuity
b) Immediate annuity
c) Life annuity
d) Fixed annuity
6. Employer’s contribution in recognised provident fund is deductible up to _____ of annual wage bill.
a) 5%
b) 8%
c) 12%
d) 15%
7. Variants of medical expenses insurance does not include ___________.
a) Hospitalisation costs
b) Outpatient cost
c) Critical care costs
d) None of the above
8. Which of the following is true about an assignee?
a) Assignee can be anybody including a minor
b) Rights pass to legal heirs on death
c) There can be one or more assignees
d) All of the above
9. __________ are a part of endowment policies.
a) Term policy
b) Money back policy
c) Unit linked policy
d) Both (a) & (c)
10. HIPAA was enacted by U.S Congress in _____.
a) 1994
b) 1996
c) 1998
d) 2000
11. The tenure of benefit plan is for __________.
a) Less than a year
b) More than one year
c) Six months
d) Either (a) or (b)
12. Which of the following are advantages of health insurance?
a) Tax benefits
b) Protects savings
c) Peace of mind
d) All of the above
13. __________ transfers all rights, title and interest to assignee.
a) Absolute assignment
b) Conditional assignment
c) Documented assignment
d) Nomination
14. Limitation period on maturity claim is __________.
a) 3 years
b) 4 years
c) 5 years
d) 6 years
15. Why is succession certificate issued?
a) To realise debts
b) To realise securities
c) To give valid discharge
d) All of the above
16. Self insurance is an example of __________.
a) Risk reduction
b) Risk avoidance
c) Risk retention
d) Risk transfer
17. In case of minor nominee, who can appoint an appointee?
a) Minor nominee
b) Policyholder
c) Legal heirs
d) None of these
18. Which act creates trust for wife/children in life insurance?
a) Insurance Act 1938
b) Married Women Property Act 1874
c) Married Women Property Act 1888
d) None of the above
19. Non-disclosure leading to __________ of risk can void contract.
a) Rejection
b) Acceptance
c) Repudiation
d) Avoidance
20. Which of the following is the end of a life insurance contract?
a) Application form
b) Underwriting
c) Policy issuance
d) Settlement of claims
