Q 1.Which plans do not guarantee a specific amount of money upon retirement, but the federal government does offer protection from abuse of assets by employers?
 a) Defined contribution plans
 b) Deferred compensation plans
 c) Defined benefit plans
 d) None of these


Q2. Pension System(NPS) has been extended to all citizens of India with effect from ___.
 a) 2nd March 2002
 b) 5th April 2005
 c) 1st April 2009
 d) 10th June 2012


Q3.Which involves assessing and quantifying risks and then taking steps to control or reduce them and it is a logical process or approach that seeks to eliminate or at least minimize the level of risk?
 a) Financial Tools
 b) Financial Resources
 c) Insurable Interest
 d) Risk Management


Q4.Which clause states in what circumstances a recovery is available to the ceding insurer and the extent of that recovery?
 a) Business covered(Attachment of cessions-Proportional) Clause
 b) Underwriting clause
 c) Business covered(Insuring Clause – Non-proportional) clause
 d) Original conditions clause


Q5.Life insurance is basically for providing financial security to the families of the deceased policyholder and this claim settlement naturally assumes very great importance in the total operations of a life insurance company?
 a) Maturity claims
 b) Death claims


Q6.Karthick is a 35-year-old individual working as a Finance Trainer for an MNC. Karthick is currently earning Rs.5,00,000 per annum. Karthick’s family consists of his wife and retired parents, who are all dependent on him. The next contribution made by Karthick to his family is Rs.3,00,000 after paying taxes and taking care of his personal expenses. Karthick expects his salary to increase by 5% every year. The discount factor is 7%. Calculate the amount of insurance cover that Karthick should take as per the Human Life Value Method.
 a) Approx 10 lakh
 b) Approx 16 lakh
 c) Approx 20 lakh
 d) Approx 26 lakh


Q 7.Which clause deals with amendments with the consent of both the parties, is possible due to this clause and addendum will form an integral part of the agreement and will be binding on both the parties?
 a) Commencement and termination clause
 b) Alterations clause
 c) Common clause
 d) Insolvency of other reinsurers clause


Q8.Which plan serves the purpose in such cases where a longer span of care and expenditure is involved and is most suitable for people who are no longer able to take care of their basic needs on a daily basis?
 a) Disability income insurance
 b) Long-term care insurance
 c) Personal accident policy
 d) Unit linked health policies


Q9.Which clause allows the ceding insurer to effect other reinsurances in priority so that there is an additional treaty, which protects the net account only and the insolvency clause usually forms part of this clause?
 a) Ultimate Net loss clause
 b) Reinstatement clause
 c) Net retained Lines clause
 d) Loss occurrence definition clause


Q10.Under the Indian Evidence Act, a person who has disappeared is presumed to be dead if he has not been heard of for __ years.
 a) 1
 b) 3
 c) 5
 d) 7

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