IC23 APPLICATIONS OF LIFE INSURANCE – 19

Q1.The contributions into the scheme are made by the employer, which together with the contribution made into a recognized superannuation fund should not exceed ____ of the annual wage bill of the employer.
 a) 27%
 b) 48%
 c) 65%
 d) 78%

 

Q2.Which Health insurance plans are mostly sold by non-life insurers in other branches of insurance and the plan tenure is for a year, after which they are renewable?
 a) Benefit plans
 b) Group Insurance plans
 c) Expenditure/Indemnity based plans
 d) None of these

 

Q3.What refers to the Commodities such as alcohol and pork are forbidden, as are any associated activities?
 a) Gharar
 b) Riba
 c) Haram
 d) Maysir

 

Q4.Losses are usually dealt with on a cash loss basis and are payable by individual reinsurers upon the rendering of appropriate information by the ceding insurer. Therefore accounts under ___ are substantially in respect of premiums.
 a) Interest and tax
 b) Inward accounts
 c) Brokerage
 d) Non-Proportional treaties

 

Q5.When can risk be referred to a reinsurer before underwriting by the insurer?
 a) Cases or proposals (risks) involving peculiar occupation which is hazardous in nature
b) Multiple risk factors on account of the health of the proposer
 c) The risk is beyond the financial powers of the basic primary insurer
 d) All of the above

 

Q6.What means a person appointed by competent authority to administer the estate of a deceased person when there is no executor?
 a) Probate
 b) Executor
 c) Will
 d) Administrator

 

Q7.Under which model a contract of agency is one in which one person appoints someone else to perform a certain risk on his behalf, usually for a certain fee?
 a) Non-profit Model
 b) Al-wakala Model
 c) Al-mudaraba Model
 d) None of the above

 

Q8.Which clause states that reinsurances are fully subject to the same terms and conditions as the original insurance?
 a) Business covered(Attachment of cessions-Proportional) Clause
 b) Underwriting clause
 c) Business covered(Insuring Clause – Non-proportional) clause
 d) Original conditions clause

 

Q9.The managed care plans that are administered through the HMO are popular in which country?
 a) Japan
b) the United Kingdom
c) United States of America
 d) India

 

Q10. Choose the correct option with regards to the group term assurance plan.
 a) The cover is renewed every year and the premiums are charged accordingly
b) The premiums are fixed for the lifetime
 c) The premiums are changed every 5 years
 d) None of the above

Click Here for Answer Key