IC23 Mock Test Sample 18
Employee contribution to superannuation fund is exempt under Section 80C. Reinsurance accounting relates to financial aspects. Incorrect statement: contributory vs non-contributory reversed. Risk management involves assessing and controlling risks. EDLI stands for Employees’ Deposit Linked Insurance. Takaful operates on Al-Wakalah and Al-Mudarabah principles. Deferred annuity can be purchased via single premium or instalments. Human Life Value depends on age, income, expenses, dependents. ESIS statements are all correct. Tax rate ₹7.5–10 lakh is 15%. Universal legatee inherits entire estate. Protection need arises in prime earning stage. Section 38 governs assignment. Term insurance statements are all correct.
1. Contributions made by employees in a superannuation fund is exempt under ________.
a) Section 80B
b) Section 80C
c) Section 80D
d) Obtaining satisfactory proof of title
2. Reinsurance accounting is connected with which aspect of reinsurance?
a) Technical
b) Financial
c) Legal
d) Section 10 (10D)
3. Which of the following is not true about superannuation fund?
a) Employer contribution is called contributory fund
b) Employer + employee contribution is non-contributory fund
c) Approval under Part B of Fourth Schedule IT Act 1961
d) Only (a) & (b)
4. __________ involves assessing and controlling risks.
a) Fund management
b) Risk management
c) Control management
d) Financial management
5. Full form of EDLI is ________.
a) Employees' Deposit Linked Insurance
b) Employee Direct Life Insurance
c) Employees' Death Linked Insurance
d) Employer's Deposit Life Insurance
6. Role of Takaful operator is based on ________.
a) Only Al-Wakalah & Al-Mudarabah
b) Only Al-Mudarabah & Tabarru
c) Only Al-Wakalah & Tabarru
d) Commencement
7. A deferred annuity can be purchased by ________.
a) Only single premium
b) Only instalments
c) Either single premium or instalments
d) 200
8. Human life value is determined by ________.
a) Age, income, expenses, dependents
b) Only income & expenses
c) Only age & income
d) Only dependents
9. Which is true regarding ESIS?
a) Covers sickness, maternity, disability, death
b) Funded by employer, employee & government
c) Major income from contributions
d) All the above
10. Tax rate for ₹7.5–10 lakh income slab is ________.
a) 5%
b) 10%
c) 15%
d) 20%
11. A person to whom entire estate is bequeathed is ________.
a) Deceased legatee
b) Universal legatee
c) Testator legatee
d) Only (a) & (c)
12. Need of protection against life risks arises at ________.
a) Initial stage
b) Prime earning stage
c) Pre-retirement stage
d) Post-retirement stage
13. Assignment of life insurance policies is governed by ________.
a) Section 38
b) Section 39
c) Section 40
d) Section 45
14. Employee contribution under group savings linked insurance is deductible under ________.
a) Section 10(10D)
b) Section 80G
c) Section 80C
d) Section 80D
15. Regulatory authority for insurance & capital market in Bahrain is ________.
a) National Bank of Bahrain
b) Central Bank of Bahrain
c) Bahrain Development Bank
d) Gulf International Bank
16. After 2 years, insurer must prove ________ to avoid liability.
a) Disclosure was made
b) Fact was material
c) Intentional fraud by insured
d) Only (a) & (c)
17. Which is true regarding term insurance?
a) Cheapest form
b) No survival benefits
c) Provides death benefit
d) All the above
18. At ________, good financial habits should be developed.
a) Initial stage
b) Prime earning stage
c) Pre-retirement stage
d) Post-retirement stage
19. NPS Trustee Bank is ________.
a) State Bank of India
b) Bank of India
c) Union Bank of India
d) Five
20. Convertible term policy can be converted ________.
a) Before end of policy
b) Before end of conversion period
c) After 6 months
d) After 5 years
