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Category: IC23 APPLICATIONS OF LIFE INSURANCE – 04

IC23 APPLICATIONS OF LIFE INSURANCE – 04

Que. 1 : Q1) Which of the following statements is false regarding nomination of life insurance policies?

   1.  a) A nomination does not have any beneficial does not have any beneficial interest except to receive the policy monies on the death of the life assured during the term of the policy

   2.  b) A policyholder can effect nomination if the policy is on own life

   3.  c) A policyholder can effect nomination if the policy is on his own life

   4.  d) None of the above

Que. 2 : Q2) Which Scheme was established in 1976 and this scheme provides lump sum benefits upon the death of the member equal to the average balance in the member’s EPF account for the period of 12 months preceding death?

   1.  a) Employees’ deposit linked insurance scheme

   2.  b) Employees’ Provident Fund

   3.  c) Employees’ Pension Scheme

   4.  d) None of these

Que. 3 : Q3) Which option is not a step in the financial planning process?

   1.  a) Gathering information

   2.  b) Identifying financial goals

   3.  c) Analysing financial preferences

   4.  d) Liquidating all existing assets and clearing outstanding debt

Que. 4 : Q4) The amount retained by the insurer is called as ____________.

   1.  a) Net retention

   2.  b) Gross retention

   3.  c) Premium retention

   4.  d) None of these

Que. 5 : Q5) Which is a defined contribution plan with a minimum percentage contribution from the employee and no matching contribution from the Government and it also constitutes a part of the Consolidated Fund of India?

   1.  a) Gratuity

   2.  b) General Provident fund

   3.  c) Defined benefit pension plan

   4.  d) None of these