IC23 APPLICATIONS OF LIFE INSURANCE – 04

Q1.Which of the following is not true with reference to gratuity?
It is a statutory liability as per the Payment of Gratuity Act 1972
 It does not offer any tax benefits
 It depends on the last drawn wages and the length of service rendered
 The gratuity fund is maintained through initial and annual contributions made by the employer into the fund based on the advice of a private actuary or an insurance company.
 All are true

 

Q2.___is a process of identifying, measuring, and communicating financial information to permit informed judgment and decisions by users of the information.
 Researching
 Assessing
 Financing
 underwriting
 All the above

 

Q3._____ is preferred when groups of homogenous risks are considered.
 Facultative reinsurance
 Catastrophe ratio reinsurance
 Treaty reinsurance
 Property reinsurance
 Quota Share reinsurance

 

Q4.Employer-based retirement plans can be categorized into _____
 3 years
 Defined benefit and defined contribution plans
 Mandatory and optional plans
 7 years
 10 years

 

Q5.Health protection policies can be taken for ___.
Self
 Spouse
Children
 Human Medical Organisation
 Home Medical Organisation

 

Q6.The insurance which should be taken by a business firm for key employees is known as ____.
 Main person insurance
Keyman insurance
 Group insurance
 National Health Service
 New Health Service

 

Q7.The Employee State Insurance Scheme is applicable to power using factories employing ____people.
 five or more
 ten or more
 fifteen or more
 twenty or more
 thirty or more

 

Q8.Which of the following is the objective of PFRDA? (i) To regulate the insurance industry in fairness and ensure the financial soundness of the industry. (ii) To protect the interests of subscribers to schemes of pension funds (iii) To promote old age income security.
 Only (i) & (ii)
 Only (ii) & (iii)
 Only (i) & (iii)
 All (i), (ii) & (iii)
 Only (iii)

 

Q9.Which of the following is TRUE regarding pure risk?
 There is a possibility of either profit or loss.
 There is either a possible loss or no loss but no gain.
 It is not insurable
 Both (a) & (c)
 All are true

 

Q10.___means the legal declaration of the intention of the testator with respect to his property which he desires to be carried into effect after death.
 Executor
 Probate
 Administrator
 Assignor
 Assignee

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