IC23 APPLICATIONS OF LIFE INSURANCE – 22

Q1.In a 75% quota share the insurer would cede ____ of the premium to the reinsurer
 a) 1/4th
 b) 3/4th
 c) 2/4th
 d) None of the above

 

Q2.Which option violates the investment condition in Takaful?
 a) Investment in Islamic banks Islamic financial institutions
 b) Investment in an alcohol manufacturing company
c) Investment in shariah-compliant high rise buildings
 d) None of the above

 

Q3.Which of the following is not a criterion for partnership insurance ______?
 a) Any one of the partners needs to be insured under partnership insurance.
 b) The partnership agreement should have a clause specifying that the partnership can be revoked definitely if a partner dies.
 c) At the death of the partner capital must be withdrawn
 d) None of the above

 

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.The Direct Tax code is a long-term effort for income tax rationalization. Say whether True or False.
 a) True
 b) False

 

Q6.Section 80C was introduced in ___.
 a) 2002-03
 b) 2004-05
 c) 2006-07
 d) 2009-10

 

Q7.How many months will take to obtain the Succession Certificate?
a) 1 month
 b) 2-3 months
 c) 3-4 months
 d) 4-5 months

 

Q8.Which type of insurances covered within the scope of the treaty must be enumerated one by one and the underwriting material forms an integral part of the treaty?
 a) Property reinsurance
 b) Engineering reinsurance
 c) Fire reinsurance
 d) Accident/ liability reinsurance

 

Q9.Which of the below is statement is correct with regards to Life Annuity Guaranteed?
a) In this type of annuity, the annuitant receives annuity for a specified term say 5,10 or 15 years and then the annuity continues for life thereafter
 b) In this type of annuity, the annuitant receives annuity for a specified term say 5,10 or 15 years and then it stops
c) In this type of annuity, the annuitant receives annuity for life and on death, the purchase price is returned to the nominee
 d) If death occurs before the end of the pre-decided term, the company returns the purchase price to the nominee

 

Q10.In the earlier days which method was followed wherein in the event of cancellation of a treaty, the cessions were allowed to run to their natural expiry?
 a) Cessions running to expiry
 b) Premium and loss portfolios
 c) Portfolio transfer method
 d) Reserves

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