IC24 Mock Test Sample 6
This set covers legal, insurance, and financial concepts such as reinsurance, contracts, taxation, and money laundering. A reinsurer accepts transferred risk, while facultative reinsurance involves selecting the best offer. Property under Indian law is classified as movable and immovable. Money laundering stages include layering and integration. Contracts can be discharged due to impossibility, such as death. The Income Tax Act, 1961 became effective from 1 April 1962. Agency does not require consideration. Annuity plans allow one-third withdrawal as lump sum. Legal principles like statutory law, beneficiary rights under MWP Act, and Uniform Civil Code ensure uniform governance and protection in financial and legal systems.
1. _____________ is the insurance company that accepts the transfer of risk from the ceding company.
a) Reinsurance
b) Cede
c) Reinsurer
d) None of these
2. Assessment is generally classified into how many processes?
a) 1
b) 2
c) 3
d) 4
3. Which of the following is the Layering stage of Money Laundering?
a) Utilizing laundered money
b) Investing small amounts every day
c) Moving funds to distant place
d) Introducing illegal profits into the financial system
4. The Indian Law classifies property as:
a) Real and personal property
b) Movable and immovable property
c) Corporeal and incorporeal property
d) Tangible and intangible property
5. The term Integration in Money Laundering refers to:
a) Accumulating black money at one place
b) Investigation of suspicious transactions
c) Merging dirty money into legitimate financial system
d) Washing dirty money into clean money
6. How many months grace period is usually allowed by an insurance company for premium payment?
a) 1 month
b) 2 months
c) 3 months
d) 4 months
7. Sharon promises to paint a picture but dies before completion. This is an example of:
a) Discharge of contract
b) Contingent contract
c) Voidable contract
d) Unlawful contract
8. The Income Tax Act, 1961 became effective from:
a) 1st March 1962
b) 1st April 1962
c) 1st May 1962
d) 1st June 1962
9. Foreign currency means any currency other than Indian currency.
a) True
b) False
10. An agent can act only within the authority granted by the principal.
a) True
b) False
11. Under facultative reinsurance, choosing the most competitive reinsurer is called:
a) Facultative discounting
b) Treaty shopping
c) Treaty discounting
d) Facultative shopping
12. According to Indian Law, property is divided into:
a) Real and personal property
b) Movable and immovable property
13. Income earned in FY 2010–11 is called:
a) Previous year
b) Assessment year
14. Which of the below statement is correct?
a) Consideration is required to create an agency
b) No consideration is required to create an agency
c) Partial consideration is required
d) Consideration is basis of agency
15. The person for whose benefit confidence is accepted is called beneficiary.
a) True
b) False
16. Maximum lump sum withdrawal in annuity plan is:
a) 1/4th of accumulated fund
b) 1/3rd of accumulated fund
c) 1/2nd of accumulated fund
d) 1/5th of accumulated fund
17. Statute law is purely written law.
a) True
b) False
18. Who can be beneficiary under MWP Act?
a) Natural children
b) Adopted children
c) Natural or adopted children
d) Natural or adopted daughter
19. Which aims at one uniform set of laws for all citizens?
a) Modern law
b) Ancient Indian law
c) Uniform Civil Code (UCC)
d) None of these
20. Under which Section, a person of majority and sound mind may employ an agent?
a) Section 183
b) Section 184
c) Section 185
d) Section 186
