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Category: IC23 APPLICATIONS OF LIFE INSURANCE – 16

IC23 APPLICATIONS OF LIFE INSURANCE – 16

Que. 1 : Q1) Which acts as the main management officer where all the information, problems and any matters to do with business are discussed and kept. For example, information is kept about participants’ personal details?

   1.  a) Personnel training

   2.  b) General administration

   3.  c) Branch operation

   4.  d) None of these

Que. 2 : Q2) In a 75% quota share the insurer would cede _______ of the premium to the reinsurer

   1.  a) 1/4th

   2.  b) 3/4th

   3.  c) 2/4th

   4.  d) None of the above

Que. 3 : Q3) Which clause states that reinsurances are fully subject to the same terms and conditions as the original insurance?

   1.  a) Business covered(Attachment of cessions-Proportional) Clause

   2.  b) Underwriting clause

   3.  c) Business covered(Insuring Clause – Non-proportional) clause

   4.  d) Original conditions clause

Que. 4 : Q4) Which type of employer based retirement plans pay either a lumpsum or a guaranteed monthly benefit upon retirement and the amount received upon retirement is normally based on a preset formula?

   1.  a) Defined contribution plans

   2.  b) Deferred compensation plans

   3.  c) Defined benefit plans

   4.  d) None of these

Que. 5 : Q5) What refers to the Uncertainty is forbidden in both contracts and transactions?

   1.  a) Gharar

   2.  b) Riba

   3.  c) Haram

   4.  d) Maysir