IC23 APPLICATIONS OF LIFE INSURANCE – 24

Q1.Which involves transferring the risk burden to another party, typically by means of a contract and an example of this is insurance?
 a) Risk reduction
 b) Risk retention
 c) Risk transfer
 d) Risk avoidance

 

Q2.Does that mean the copy of a will certified under the seal of a court of competent jurisdiction with a grant of administration to the estate of the testator?
 a) Probate
 b) Executor
 c) Will
 d) Administrator

 

Q3.Which loss means financial loss due to the happenings of direct loss of the property?
 a) Direct Loss
 b) Personal risks
 c) Consequential loss
 d) None of these

 

Q4. Takaful contract should embody which of the following conditions?
 a) Specialty condition
 b) Partnership condition
 c) Investment condition
 d) All of the above

 

Q5.Arbitrary amounts such as ___ the salary amount are decided as adequate amounts for insurance.
 a) 5 times
 b) 10 times
 c) 15 times
 d) 20 times

 

Q6.Which of the statement is false regarding quota share reinsurance?
 a) The insurer cedes a fixed percentage of premiums and losses for every risk accepted.
 b) This method is generally not suitable for a small company or a newly established company.
c) This type of treaty is more profitable to a reinsurer as the ceding commission is lower.
 d) None of the above

 

Q7.What refers to if a life insurance policy is owned by the insured, has the advantage of continued control of the policy, and any ownership in the associated cash values of a permanent policy?
 a) Wills
 b) Succession certificate
 c) Ownership considerations
 d) Naming beneficiaries

 

Q8.UK Money Purchase schemes is also known as _____.
 a) Defined Contribution scheme
 b) Company pension schemes
 c) Company Purchase schemes
 d) None of these

 

Q9.How many types of Pure risk are there?
 a) One
 b) Two
 c) Three
 d) Four

 

Q10.What means uncertainty, Hazard and chance of risk and technically it refers to the sale of a thing which is not present at hand, or the sale of a thing whose consequence or outcome is not known, or a sale involving risk or hazard whose details are uncertain, such as fish in the water or a bird in the air?
 a) Riba
 b) Gharar
 c) Maysir
 d) Haram

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