IC23 Mock Test Sample 7
Reinsurance is the process where the insurer transfers risk to a reinsurer. Deferred compensation suits professionals. Equity allocation in health plans is capped at 50%. Gratuity requires minimum 5 years, so 10 years is incorrect. Multiple nominees are covered under Section 39(6). HDHP stands for High Deductible Health Plan. Unemployment is a fundamental risk. GPF statements are all true. Risk management follows assessment → measurement → strategy. HIPAA ensures portability. A will is a legal declaration after death. Insurance works on principles. Stock investment is speculative risk. NPS-Lite targets weaker sections. HLV calculates insurance needs. Life insurance risks are unique. Death proceeds are tax-free.
1. ____________ is the process where risk is ceded to a reinsurer.
a) Assurance
b) Insurance
c) Reinsurance
d) Deinsurance
Ans: c) Reinsurance
2. Deferred compensation plan is suitable for ______.
a) Filing tax returns
b) Professional persons
c) Low paid executives
d) None of the above
Ans: b) Professional persons
3. Equity allocation in health protection plans should not exceed _____.
a) 30%
b) 40%
c) 50%
d) 60%
Ans: c) 50%
4. Which is NOT true regarding gratuity?
a) Governed by 1972 Act
b) Paid on retirement/death
c) Minimum 10 years service required
d) All are true
Ans: c) Minimum 10 years service required
5. Section related to multiple nominees payment is ______.
a) Section 39(2)
b) Section 39(3)
c) Section 39(4)
d) Section 39(6)
Ans: d) Section 39(6)
6. Full form of HDHP is ______.
a) Highly Deductible Health Policy
b) High Deductible Health Plan
c) Huge Deductible Health Plan
d) Yield
Ans: b) High Deductible Health Plan
7. Unemployment is an example of ______.
a) Fundamental risk
b) Particular risk
c) Dynamic risk
d) Static risk
Ans: a) Fundamental risk
8. Which is true regarding GPF?
a) Govt pays interest
b) Part of Consolidated Fund
c) Withdrawals allowed
d) All are true
Ans: d) All are true
9. Correct sequence of risk management process is ______.
a) (iii), (ii), (i)
b) (i), (ii), (iii)
c) (ii), (i), (iii)
d) (ii), (iii), (i)
Ans: b) (i), (ii), (iii)
10. Identify the true statement.
a) Only (i) & (ii)
b) Only (ii) & (iii)
c) Only (i) & (iii)
d) None
Ans: a) Only (i) & (ii)
11. Portability in insurance is governed by ______.
a) HSA
b) NHS
c) HIPAA
d) India
Ans: c) HIPAA
12. Legal declaration after death is called ______.
a) Goodwill
b) Patent
c) Copyright
d) Will
Ans: d) Will
13. Who cannot buy medical expense insurance?
a) Individuals
b) Families
c) Bank account holders
d) None of the above
Ans: d) None of the above
14. Insurance works on ___ principles.
a) One
b) Two
c) Three
d) Four
Ans: c) Three
15. Example of speculative risk is ______.
a) Train accident
b) Earthquake
c) Investment in stock market
d) Car accident
Ans: c) Investment in stock market
16. Purpose of NPS-Lite is ______.
a) For rich people
b) For weaker sections
c) Promote savings
d) Rule 89
Ans: b) For weaker sections
17. ______ helps calculate life insurance requirement.
a) TLV
b) HLV
c) MLV
d) Both (a) & (b)
Ans: b) HLV
18. Exception where risks need not be measurable is ______.
a) Health insurance
b) Travel insurance
c) Property insurance
d) Life insurance
Ans: d) Life insurance
19. Life insurance death proceeds are generally ______.
a) 50% taxable
b) Taxable
c) Tax free
d) Acknowledgment
Ans: c) Tax free
20. Which is NOT true for defined benefit plan?
a) Lump sum/guaranteed benefit
b) No guarantee
c) Based on formula
d) Employer-employee contribution
Ans: b) No guarantee
