IC23 Mock Test Sample 5
Life insurance for key employees is called Keyman insurance. ESIC applies to factories with 10 or more workers using power. Pure risk involves only loss or no loss. PFRDA protects pension subscribers and promotes old-age income security. Assignment can be done by endorsement or deed. Health crisis is a personal risk. Immediate annuity starts immediately. Tax exemption on life policy is under Section 10(10D). Policy assignment has two types. Savings in group plans grow at 4%. Riba means interest prohibition. Preventive check-up deduction is ₹5000. Pension commutation exemption falls under Section 10(10A).
1. The insurance which should be taken by a business firm for key employees is known as _______.
a) Main person insurance
b) Key man insurance
c) Group insurance
d) National Health Service
Ans: b) Key man insurance
2. The Employee State Insurance Scheme is applicable to power using factories employing _______ people.
a) Five or more
b) Ten or more
c) Fifteen or more
d) Twenty or more
Ans: b) Ten or more
3. Which of the following is TRUE regarding pure risk?
a) There is a possibility of either profit or loss
b) There is either a possible loss or no loss but no gain
c) It is not insurable
d) Both (a) & (c)
Ans: b) There is either a possible loss or no loss but no gain
4. Objective of PFRDA includes:
a) Only (i) & (ii)
b) Only (ii) & (iii)
c) Only (i) & (iii)
d) All (i), (ii) & (iii)
Ans: b) Only (ii) & (iii)
5. Which can be done by endorsement or separate deed?
a) Crucification
b) Probation
c) Assignment
d) Nomination
Ans: c) Assignment
6. __________ deals with attachment of individual cession in treaty reinsurance.
a) Marine proportional reinsurance
b) Original conditions clause
c) Ultimate net loss clause
d) Non proportional reinsurance
Ans: b) Original conditions clause
7. Health crisis is an example of _______.
a) Personal risk
b) Speculative risk
c) Liability risk
d) Property risk
Ans: a) Personal risk
8. In immediate annuity, payout starts __________.
a) After one year
b) After two years
c) After specific future date
d) Immediately
Ans: d) Immediately
9. Maximum employer contribution to pension/provident fund (IT limit)?
a) 10%
b) 17%
c) 25%
d) 27%
Ans: d) 27%
10. Tax-free maturity/death proceeds fall under _______.
a) Section 10(10A)
b) Section 10(10B)
c) Section 10(10C)
d) Section 10(10D)
Ans: d) Section 10(10D)
11. Assignment of life insurance policy types?
a) Two
b) Three
c) Four
d) GLV
Ans: a) Two
12. Savings portion in group savings linked plans accumulates at ______.
a) 4%
b) 6%
c) 8%
d) 9%
Ans: a) 4%
13. What does riba mean?
a) Uncertainty forbidden
b) Payment of interest forbidden
c) Gambling forbidden
d) Pork forbidden
Ans: b) Payment of interest forbidden
14. Which is NOT a condition for claim settlement?
a) Evidence of event
b) Legal title proof
c) Regular premium payment
d) Rider compulsory
Ans: d) Rider compulsory
15. Why MAS accommodates Takaful?
a) Same prudential measures
b) Same supervisory processes
c) Large Muslim population
d) Both (a) & (b)
Ans: d) Both (a) & (b)
16. Which is NOT a feature of annuity?
a) Promise
b) Contract
c) Bonus
d) Immediate payment
Ans: c) Bonus
17. Preventive health check-up deduction allowed?
a) 2000
b) 5000
c) 7000
d) 10000
Ans: b) 5000
18. Pension commutation tax exemption under ______.
a) Section 10(10A)
b) Section 10(10B)
c) Section 10(10C)
d) Section 20
Ans: a) Section 10(10A)
19. Claim settled via succession certificate when ______.
a) No nominee
b) Nominee is minor without appointee
c) No will
d) Bond
Ans: a) No nominee
20. First reinsurance company?
a) Mercantile & General
b) Swiss Re
c) Cologne Re
d) None of the above
Ans: c) Cologne Re
