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Category: IC23 APPLICATIONS OF LIFE INSURANCE – 24

IC23 APPLICATIONS OF LIFE INSURANCE – 24

Que. 1 : Q1) No commission is payable under this type of business as such factors will be taken into account when arriving at the rate for the treaty though brokerage is determined separately?

   1.  a) Fire and accident proportional reinsurance

   2.  b) Non-proportional reinsurance

   3.  c) Marine proportional reinsurance

   4.  d) Proportional reinsurance

Que. 2 : Q2) Which policy is aimed at compensation for death or bodily injury suffered directly as result of accident and the sum assured payable payable varies with extent of damage i.e.100% of sum assured in case of death due to accident?

   1.  a) Unit linked health policies

   2.  b) Disability income insurance

   3.  c) Long-term care insurance

   4.  d) Personal accident policy

Que. 3 : Q3) Which clause specifies that in the event of any portion of the limit of cover being reduced by settlement of a loss, the amount of limit of cover so reduced will be automatically reinstated from the time of commencement of the loss occurrence until the expiry of the agreement?

   1.  a) Ultimate Net loss clause

   2.  b) Reinstatement clause

   3.  c) Net retained Lines clause

   4.  d) Loss occurrence definition clause

Que. 4 : Q4) Which involves accepting the loss when it occurs and it a good strategy only when it is impossible to transfer the risk or based on an evaluation of the economic loss exposure, it is determined that the diminutive value placed on the risk can be safely absorbed?

   1.  a) Risk avoidance

   2.  b) Risk retention

   3.  c) Risk transfer

   4.  d) Risk avoidance

Que. 5 : Q5) Which methods involves that reduce the severity of the loss and examples include sprinklers designed to put out a fire to reduce the risk of loss by fire?

   1.  a) Risk reduction

   2.  b) Risk retention

   3.  c) Risk transfer

   4.  d) Risk avoidance

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