IC23 Mock Test Sample 3
These questions cover personal accident insurance, health insurance, annuities, taxation, and reinsurance concepts. Compensation in accident policies depends on severity of injury, while limitation periods define claim timelines. Health systems like PPO and CGHS provide structured medical benefits. Financial planning is done by financial planners. Takaful principles and models like Al-Wakalah follow Islamic guidelines. EPFO and EDLI support employee benefits. Legal concepts like assignment transfer policy rights. Tax deductions fall under Section 80C. Reinsurance methods like quota share and excess of loss help manage insurer risk. Defined pension plans and provident funds ensure long-term financial security for individuals and families.
1. If there is a loss of one limb and one eye in an accident, _____ of the sum assured is payable.
a) 25%
b) 50%
c) 75%
d) 100%
2. The period of limitation for a suit on a life insurance policy is ________.
a) Two years
b) Three years
c) Four years
d) Only (a) & (b)
3. __________ aims to offer cost efficiency of HMO with health benefits.
a) Hospital Cash Benefit
b) Preferred Provider Organisation
c) HIPAA
d) All the above
4. CGHS is applicable to which of the following?
(i) Working central government employees
(ii) Retired central government employees
(iii) Governors
a) Only (i) & (iii)
b) Only (ii)
c) Only (iii)
d) All (i), (ii) & (iii)
5. __________ is the person who develops a financial plan.
a) Financial manager
b) Financial planner
c) Financial developer
d) Risk transfer
6. In which annuity can income be taken till age 75 years (UK)?
a) Fixed Money Schemes
b) Increasing annuity without guarantee
c) Joint Life Last Survivor Annuities
d) Money Purchase Schemes
7. Which statement is NOT true about Al-Wakalah model?
a) Agent acts on behalf of principal for a fee
b) Operator can charge management fee
c) It is a non-Islamic contract
d) All the above
8. EDLI contributions are credited to ____________.
a) Government Fund
b) Reserve Fund
c) Capital Reserve
d) Insurance Fund
9. First Takaful company was established in ______.
a) 1979
b) 1980
c) 1981
d) 1982
10. As a result of __________, rights transfer to assignee.
a) Transferability
b) Insurable interest
c) Assignment
d) 100%
11. Broker details can be identified through _________ clause.
a) Arbitration
b) Intermediaries
c) Set off
d) Termination clause
12. Document required for maturity claim settlement is ________.
a) Proof of age
b) Policy document
c) Death certificate
d) Financial plan
13. __________ is a contract providing financial protection against loss.
a) Insurance
b) Mutual fund
c) Share certificate
d) Fixed deposit
14. Deductions for PF, LIC, etc. are under ________ of IT Act.
a) Section 80C
b) Section 80D
c) Section 80E
d) Section 80G
15. Fire and accident proportional reinsurance accounts are on ______ basis.
a) Accounts year
b) Underwriting year
c) Insured year
d) Savings plan basis
16. Which is NOT true about defined pension plan?
a) Paid from government revenues
b) Forfeited if leaving before 25 years
c) Family pension payable
d) Both (a) & (c)
17. _________ method is suitable for small/new company.
a) Surplus share reinsurance
b) Deficit share reinsurance
c) Quota share reinsurance
d) Small share reinsurance
18. Full form of EPFO is ___________.
a) Employer’s Provident Fund Organisation
b) Employees' Provident Fund Organisation
c) Employee’s Pension Fund Organisation
d) None of the above
19. Takaful Rules in Pakistan were drafted in ________.
a) 2001
b) 2003
c) 2005
d) 2007
20. Which is true about Excess of Loss Ratio?
a) Covers whole account
b) Covers losses beyond set loss ratio
c) Retention doesn’t guarantee profit
d) Only (a) & (b)
