IC24 LEGAL ASPECTS OF LIFE ASSURANCE – 02

Q1.Which of the below is an essential element of a contract?
a) There should be no consideration
 b) The promisor and promise should be a major
c) There should be a proposal, acceptance, and communication
 d) There should not be consensus ad item

 

Q2.Which of the below statement is correct with regards to stamp duty payable to life insurance policies?
 a) Ten paise for every sum insured of Rs.100
 b) Twenty paise for every sum insured of Rs.100
 c) Ten paise for every sum insured of Rs.1000
 d) Twenty paise for every sum insured of Rs.1000

 

Q3.As per Section 11 of the Indian Contract Act, who of the below is not competent to enter into a contract?
 a) A person who is a minor
 b) A person of unsound mind
 c) A person who is disqualified from contracting by law
 d) All of the above

 

Q4.Statement A: A bank or any lender has an insurable interest in the life of the person who has taken the loan. Statement B: A bank or any lender has an insurable interest in the property mortgaged against the loan
 a) Only Statement A is True
 b) Only Statement B is True
 c) Both Statements are True
 d) None of the statements are True

 

Q5.A customer, Rajesh, agrees to pay Rs. 50 to the shopkeeper and the Shopkeeper in return agrees to give Rajesh a gift voucher having a value of Rs. 50. This is a set of promises which form consideration for each other. This is a set of promises which form consideration for each other. Thus, it is an _____ between Rajesh and the shopkeeper.
 a) Consideration
 b) Promises
 c) Agreement
 d) Contract

 

Q6.Where an order is passed under the Provincial Insolvency Act and the person is adjudged an insolvent, the whole of his property shall vest in the court or in a ____ appointed by the court.
 a) Minor
 b) Receiver
 c) Sender
 d) Agent

 

Q7.A person is competent to contract if he
 a) is of the age of majority
 b) is of sound mind
 c) is not disqualified from contracting by any law to which he is subject
 d) All the above

 

Q8.In which year was Insurance Ombudsman established?
 a) 1992
 b) 1994
 c) 1996
 d) 1998

 

Q9.Which of the following statements is false with respect to Insurable Interest?
a) A person has an unlimited insurable interest in his own life
b) A Husband has Insurable interest in the life of his wife and Vice versa
c) Parents have an insurable interest in the lives of their children
 d) Debtor has Insurable Interest in the life of creditor

 

Q10.Promises which form the consideration or part of the consideration for each other are called ____.
 a) Contract
 b) Reciprocal promises
 c) Agreement
 d) Consideration

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