IC23 Mock Test Sample 2
These questions cover important concepts in insurance, financial planning, taxation, and legal aspects. Reinsurance clauses like underwriting and original conditions define risk terms and retention. Financial planning begins with identifying goals. Legal terms such as probate, executor roles, and succession certificates relate to estate management. Employee benefits include gratuity and EDLI contributions. Tax provisions like Section 37(1) and 80C apply to insurance and ULIPs. Insurance products like ULIPs, annuities, and group term plans serve different needs. Takaful principles prohibit gambling (Maysir). Reinsurance types include facultative cover. Government pensions are funded through current revenues, supporting social security systems.
1. The insolvency clause usually forms part of ____________ clause.
a) Underwriting
b) Original conditions
c) Ultimate net loss
d) Only (a) & (c)
2. ____________ states the terms on which reinsurance business is accepted and retention limits.
a) Original conditions clause
b) Set off clause
c) Arbitration clause
d) Underwriting clause
3. Employees under EDLI scheme must deposit ______ of annual wage bill as premium.
a) 0.01%
b) 0.05%
c) 0.10%
d) Section 80E
4. Which is the most important step of financial planning?
a) Achieving financial goals
b) Identifying financial goals
c) Identifying financial tools
d) Achieving good returns
5. _________ means a copy of a will certified by a competent court.
a) Executor
b) Probate
c) Administrator
d) Section 39(5)
6. Gratuity is paid on resignation after completion of ____ of service.
a) Basic + DA
b) 4 years
c) 5 years
d) Basic + DA + TA
7. A missing person is presumed dead after __________.
a) 5 years
b) 7 years
c) 10 years
d) 12 years
8. Which is a function of executor?
a) Capital reduction
b) Applying for probate
c) Paying funeral expenses
d) Both (b) & (c)
9. Keyman insurance premium is deductible under ____ of IT Act.
a) Section 37(1)
b) Section 37(2)
c) Section 38(1)
d) Only (a)
10. What does Maysir mean?
a) Uncertainty in contracts
b) Uncertainty in transactions
c) Gambling is forbidden
d) Both (a) & (b)
11. _________ are additional benefits with insurance policy.
a) Flexi premiums
b) Tax savings
c) Riders
d) Perks
12. In ULIP, benefits are available under _________ (5-year lock-in).
a) Section 80C
b) Section 80D
c) Section 80E
d) Section 80G
13. Which is NOT true about deferred annuity?
a) Payout starts in future
b) Suitable for immediate income
c) Investment grows tax deferred
d) Variable annuity
14. As per Section 113(2), policy with surrender value __________.
a) Shall lapse after 3 years non-payment
b) Shall not lapse due to non-payment
c) Kept alive as paid-up policy
d) Only (b) & (c)
15. Nivesh Plus of LIC is a ___________.
a) Endowment plan
b) Money back plan
c) Unit linked plan
d) Guaranteed plan
16. Which is specific reinsurance covering a single risk?
a) Facultative reinsurance
b) Stop loss reinsurance
c) Surplus reinsurance
d) Quota share reinsurance
17. _________ is paid from current government revenues.
a) Gratuity
b) General Provident Fund
c) Defined benefit pension plan
d) Public Provident Fund
18. First Takaful company was established in ______.
a) Algeria
b) Sudan
c) Tunisia
d) Libya
19. Succession certificate empowers person __________.
a) To receive interest and dividends
b) To negotiate transfer
c) With respect to securities of deceased
d) All (a), (b) & (c)
20. Which is true about group term assurance?
a) Variable benefit plans
b) One-year renewable plan
c) Voluntary and easy to administer
d) Compulsory and voluntary plans
