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.
 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 ___.
 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.

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