IC23 Mock Test Sample 13
Annuity plans provide regular income in old age. Health Savings Accounts began in the United States. Takaful is based on Islamic principles. For a newly married person, term, mortgage, and endowment plans are suitable. Fundamental risks arise from natural and economic factors. Community-based health insurance premiums are generally low. Quarterly accounting helps in monitoring results and decision-making. Gharar means uncertainty is forbidden. Critical illness rider provides lump sum on diagnosis. Conditional assignment creates vested interest. Pool participant is policyholder. Risk avoidance means not undertaking risky activity. Facultative risk is insurer to reinsurer. Takaful does not guarantee fixed returns.
1. _________ plans provide for a regular income for self and dependents during old age.
a) Term
b) Endowment
c) Annuities
d) None of the above
2. Health savings account came into existence in __________.
a) United States
b) United Kingdom
c) Africa
d) None of the above
3. Takaful refers to insurance offered according to the tenets of _____.
a) Sikhs
b) Islam
c) Jainism
d) Hindus
4. Which plan is suitable for Mr. Abhinav who just got married?
i. Term insurance
ii. Mortgage protection plan
iii. Endowment plans
a) Only (i) & (ii)
b) Only (ii) & (iii)
c) Only (i), (ii) & (iii)
d) Only (i) & (iii)
5. Fundamental risks are caused by which of the following?
a) Earthquake
b) Accidents
c) Robbery
d) Changes in price level
6. Premiums in Community Based Health Insurance are ________.
a) Very high
b) Fixed by the government
c) Based on income tax slab
d) Generally low
7. Which is an advantage of quarterly accounting system?
a) Prompt decision
b) Timely payments
c) Monitor results regularly
d) All of the above
8. What does Gharar mean in Islamic law?
a) Uncertainty is forbidden in contracts
b) Uncertainty is forbidden in transactions
c) Gambling is forbidden
d) Both (a) & (b)
9. __________ provides a lump sum on diagnosis of critical illness.
a) Critical illness rider
b) Premium waiver rider
c) Accident benefit rider
d) Health insurance act
10. __________ creates vested interest but may be revoked on contingencies.
a) Absolute assignment
b) Documented assignment
c) Conditional assignment
d) None of the above
11. Who is the pool participant in an insurance contract?
a) Insurer
b) Policyholder
c) Premium
d) Agent
12. In Takaful contract, responsibilities are delegated to ____ committees.
a) Two
b) Three
c) Four
d) Five
13. Which clause allows third party rights against reinsurer?
a) Cut-through endorsement clause
b) Reinstatement clause
c) Loss occurrence clause
d) Net retained lines clause
14. As per Section 107, burden of proving death lies on ________.
a) Relative
b) Person who affirms it
c) Insurer
d) Nominee
15. Which is not an aspect of financial planning?
a) Control over expenses
b) Saving money
c) Investment
d) None of the above
16. Which plan should Mr. Abhinav (35, married with kids) take?
a) Child plan
b) Term insurance plan
c) Pension plan
d) Endowment plan
17. __________ is an actuarially calculated reserve for long-term liabilities.
a) Marine reinsurance
b) Accident reinsurance
c) Engineering reinsurance
d) Accounting reserve
18. Each facultative risk is submitted by __________ to __________.
a) Insured to insurer
b) Insured to reinsurer
c) Reinsurer to insurer
d) Insurer to reinsurer
19. Technique of not performing risky activity is called ________.
a) Risk reduction
b) Risk avoidance
c) Risk retention
d) Risk transfer
20. Which is not true regarding Takaful?
a) Based on mutual cooperation
b) Shariah compliant
c) Risk sharing
d) Guarantees fixed returns
