IC24 Mock Test Sample 7
This set focuses on legal, taxation, and insurance principles. IRDA Act amended key insurance laws like Insurance Act 1938 and LIC Act 1956. Annuities are generally taxable as income. Indian Contract Act declares agreements without consideration or involving illegality as void. ULIPs provide fund value on maturity. Insurable interest is essential for valid insurance contracts, absent in relationships like siblings. Premium refunds depend on contract validity. Income replacement method estimates insurance needs. Consumer Protection Act ensures simple grievance redressal. Legal provisions also cover digital signatures, cyber laws, and taxation. Overall, these concepts ensure transparency, fairness, and legal enforceability in financial and insurance systems.
1. After the enactment of the IRDA Act, which Acts were amended?
a) Only Insurance Act, 1938
b) LIC Act, 1956 and GIBNA Act, 1972
c) Insurance Act, 1938, LIC Act, 1956 and GIBNA Act, 1972
d) Insurance Act, 1938 and LIC Act, 1956
2. What is the tax treatment for annuities received by an individual?
a) Completely tax free
b) Taxable as salary
c) Partially exempt
d) Tax free up to Rs. 5000
3. The Indian Contract Act declares which agreements void?
a) Agreements made by minors
b) Agreements without consideration
c) Agreements in restraint of marriage
d) Agreements to commit illegal acts
4. Instruments executed outside India can be stamped within _____ months.
a) 2
b) 3
c) 4
d) 5
5. Under which policy is fund value paid on maturity?
a) Money Back plans
b) ROP plans
c) ULIPs
d) Annuities
6. Which schedule specifies unfair labour practices?
a) Second
b) Third
c) Fourth
d) Fifth
7. How many types of proposal forms are there?
a) Four
b) Five
c) Six
d) Seven
8. __________ is the legal right to insure a subject matter.
a) Premium
b) Insurable interest
c) Policy
d) Sum assured
9. Refund of premium is allowed if policy is void due to fraud or illegality.
a) True
b) False
10. Where do you NOT find insurable interest?
a) Surety–Co-surety
b) Employee–Employer
c) Husband–Wife
d) Brother–Sister
11. When policy money is due to a minor, it is paid to:
a) Appointee
b) Minor
c) Guardian
d) Legal heir
12. Which method uses present value of future earnings?
a) Need analysis
b) Income replacement
c) Income multiple
d) Expense substitution
13. In critical illness rider, benefit is payable at:
a) Death
b) Diagnosis
c) Bills submission
d) Discharge
14. Statement A & B on insurable interest:
a) A is TRUE
b) B is TRUE
c) Both are TRUE
d) Both are FALSE
15. Set of instructions that damage or modify computer systems is:
a) Computer database
b) Computer contaminant
c) Computer virus
d) Damage
16. Salient features of Consumer Protection Act include:
a) Covers goods and services
b) Applicable to all sectors
c) Simple and speedy redressal
d) All of the above
17. Appeal deposit under District Forum is 50% or ______ whichever is less.
a) Rs. 25,000
b) Rs. 35,000
c) Rs. 50,000
d) Rs. 1,00,000
18. Money payable under life insurance after death is a:
a) Credit
b) Debt
c) Probate
d) None
19. Supreme Court is apex of justice system.
a) True
b) False
20. __________ means system of private and public key for digital signature.
a) Electronic record
b) Digital signature
c) Asymmetric crypto system
d) None
