IC23 Mock Test Sample 4
These questions cover key concepts of life insurance, financial planning, and employee benefits. Life insurance primarily provides financial protection against loss of income. Human Life Value is based on present value of future earnings. Gratuity funds are employer-funded and structured as trusts. CGHS offers medical services including medicines and home care. Section 80C benefits apply to individuals and HUFs. Section 45 is known as the Indisputability Clause. Retirement plans include defined benefit and contribution schemes. Reinsurance types like treaty reinsurance cover homogeneous risks. Financial information is communicated through accounting, helping stakeholders make informed decisions.
1. A gratuity fund is maintained in India ___________________.
a) Through initial and annual contribution by employer
b) Is an irrevocable trust fund
c) By buying an insurance plan
d) Only (a) & (b)
2. Human life value is the ________ value of your _________ earnings.
a) Present, future
b) Future, present
c) Total, monthly
d) Total, annual
3. What is the primary purpose of a life insurance product?
a) Tax rebates
b) Safe investment avenue
c) Protection against loss of economic value
d) Wealth accumulation
4. Aarav and Pranita (young with children) – what is NOT their main concern?
a) Liability & Insurance Planning
b) Savings & Investment Planning
c) Employee Benefits Planning
d) Retirement & Estate Planning
5. Particular risks are caused by __________.
a) Inflation
b) Hurricanes
c) Robbery
d) Both (b) & (c)
6. Who is NOT interested in financial information of a company?
a) Investors
b) Taxation authorities
c) Shareholders
d) Ambassador of India
7. If nominee is minor and no appointee, claim is settled in favour of ________.
a) Policy cannot be issued
b) Spouse
c) Legal heirs
d) None of the above
8. Which benefits are covered under CGHS?
a) Medical care
b) Home visits
c) Free medicine
d) All the above
9. ______ is a contract to compensate loss against premium.
a) Risk
b) Indemnity
c) Underwriting
d) Testator
10. Section 80C benefits are available to ____________.
a) Individuals
b) Companies
c) Partnership firms
d) HUF
11. Employee benefit plan can be divided into ___ categories.
a) Two
b) Three
c) Four
d) Five
12. Section 45 of Insurance Act 1938 is called ____________.
a) Questionable clause
b) Underwriting clause
c) Indisputability clause
d) Both (a) & (c)
13. PFRDA was established by __________.
a) RBI
b) State Government
c) Government of India
d) Supreme Court
14. Which is NOT a key benefit of life insurance?
a) Asset protection
b) Retirement planning
c) Tax benefits
d) None of the above
15. Which is NOT true about gratuity?
a) Statutory liability
b) No tax benefits
c) Based on last drawn salary
d) Fund maintained by employer contributions
16. __________ is process of identifying and communicating financial information.
a) Researching
b) Assessing
c) Financing
d) Accounting
17. __________ is preferred for homogeneous risks.
a) Facultative reinsurance
b) Catastrophe reinsurance
c) Treaty reinsurance
d) Property reinsurance
18. Employer-based retirement plans are categorised into ___________.
a) 3 years
b) Defined benefit & defined contribution
c) Mandatory & optional
d) 7 years
19. Health protection policies can be taken for _________.
a) Self
b) Spouse
c) Children
d) All of the above
