1. Inter temporal allocation of resources means allocation of resources across ……. (A) Needs (B) sectors (C) Space (D) Time .
2. Traditional cash value plans are also known as (A) Unbundled plans (B) Bundled plans (C) ULIP (D) Annuity .
3. Which of the following plans have several limitations : (A) Traditional cash value plans (B) Non-traditional plans (C) Both A and B (D) Neither A nor B .
4. In respect of Traditional cash value plans, which is incorrect:- (A) Bonuses do not reflect the investment performance of the insurer (B) The method for arriving at surrender value is not easily visible. (C) Cash value component is well defined. (D) None of the above. .
5. In which type of products, protection and saving elements were separated? (A) Traditional cash value plans (B) Non-traditional plans (C) Both A and B (D) Neither A nor B .
6. Non-traditional products involved shift from traditional products in terms of – (A) Investment linkage (B) Transparency (C) Flexibility (D) All the above .
7. Non-traditional products are also known as – (A) Unbundled plans (B) Bundled plans C) ULIP (D) Annuity .
8. The major appeal for non-traditional products was in terms of – (A) Inflation beating returns (B) Direct linkage with investment gains (C) Flexibility & Higher surrender value (D) All the above. .
9. Which was the major motive for people going for non- traditional products? (A) Flexibility (B) Wealth accumulation C) Transparency (D) All the above .
10. As per IRDA, all Universal Life products are known as (A) ULIP plans (B) Variable insurance products (C) Both (D) None .
11. Universal life insurance is characterized by – (A) Flexible premiums (B) Flexible face amount (C) Death benefit. (D) All above.
12. In Universal life products, larger the size of the premium,… the coverage provided and …. the policy cash value (A) Smaller, larger (B) Larger, smaller (C) Smaller, Smaller (D) larger, larger .
13. Under Universal life products, there was facility of completely flexible premiums after how many years? 1 2 3 4.
14. Universal life policies are kept in force even if premiums are not paid, provided its cash value was sufficient to pay for the following items:- (A) Policy preparation & stamp charges (B) Agent commission & policy charges (C) Mortality charges and expenses (D) All of the above. .
15. Universal Life plans provide for which of the following facility? (A) Payment of additional premiums over and above the target amount (B) Skipping of premiums (C) Both A and B (D) None of the above .
16. Universal life insurance policy provides for partial withdrawals. This partial withdrawal was made from the policy’s (A) Loan value (B) Surrender Value (C) Paid up value (D) Cash value.
17. In respect of Universal life insurance, which of the following statement is correct:- (A) The partial withdrawal once taken need not be repaid (B) Policy was kept in force even if premiums are not paid provided there were adequate investment returns (C) Both A & B correct (D) Both A & B wrong.
18. As per IRDA, which of the following non- traditional products are permitted to be sold? (A) Variable insurance plans (B) Unit Linked insurance plans (C) Both A & B (D) None .
19. Variable Life Insurance is a kind of ………. Insurance (A) Whole life (B) Money back (C) Endowment (D) Term .
20. In Variable life insurance, the death benefit and cash value of the policy …. according to the investment performance of a special investment account into which premiums are credited (A) Went up (B) Went down (C) Remain Fixed (D) Fluctuate .
21. Under Variable life insurance, if the cash value became zero, the policy would …. (A) Continue (B) Converted into term ins Surrender (D) Terminate .
22. In traditional cash value policies, the policy reserve form part of a ….. (A) Special investment account (B) General investment account (C) Both (D) None .
23. In Variable insurance policies, the policy reserve form part of a …. (A) Special investment account (B) General investment account (C) Both (D) None .
24. In Variable insurance plan, the policy reserves are placed in ….. fund which do not form part of its general investment account A) Same (B) Separate (C) Secured (D) Growth.
25. In which type of policy, death benefits and cash value varied with investment experience? (A) Traditional cash value plan (B) ULIP (C) Universal Life Ins (D) Variable life ins.
26. In respect of Traditional plans, which of the following statement is correct? (A) Policyholder’s bonus depend on periodic valuation of Assets & Liabilities (B) Bonus did not directly reflect the value of assets of the insurer (C) Both correct (D) Both are wrong .
27. In Unit Linked policies, the benefits are determined by the …. of units credited to the policyholder’s account on the date on which payment is due (A) Growth (B) Value C) Reduction (D) Loss .
28. Units in a Unit Linked policy are purchased through payment of a – (A) Single premium (B) Regular premium (C) Either A or B (D) None .
29. Name the deductions made from policyholder of a Unit Linked policy. (A) Commission (B) Net Asset Value Fund Charges.
30. The value of the units of a Unit Linked policy is termed as : (A) Gross Asset Value (B) Net Asset Value (C) Bonus (D) Guaranteed addition .
31. Which special feature of Unit Linked policy allowed change from one fund to another? (A) Transfer (B) Switching (C) Assignment (D) Loan .
32. From the following, choose the fund which provides for predominant investment in Equities (A) Equity Fund (B) Debt Fund (C) Balanced fund (D) Money market fund.
33. What could be the basis for choice of fund in a Unit Linked policy? (A) Investment need (B) Risk profile (C) Both A and B (D) NOTA .
34. In Traditional life insurance policies, the investment risk is borne by the ……… while in Unit Linked plans, the investment risk is borne by the …….. (A) Policyholder, Unitholder (B) Ins. Company, Unit-holder (C) Insurance company in both the cases (D) Policyholder in both the cases .
35. With regard to Unit Linked policy, who bears the expense and mortality risk? (A) Ins. Co. (B) Policyholder C) Agent (D) IRDA .
36. In Unit Linked policies, the risk cover is a multiple of (A) Fund Value (B) Accumulations (C) Net Asset Value (D) Premiums .
37. In Unit Linked plan, the Fund Value is a product of which of the following: (A) Gross Asset Value & Net Asset Value (B) Net Asset Value & Premium (C) Net Asset Value & Charges (D) Net Asset Value & No. of Units .
38. Why Pensions are said to represent the flip side of life insurance? (A) Life insurance provides protection against premature death whereas pension covers the contingency of living too long (B) In life insurance premium payments result in creation of sum assured. In case of pensions, the corpus gets liquidated by regular income payments (C) Both the above are correct (D) Both the above are Wrong.
39. Public Pensions are provided by the – (A) Insurance companies (B) Employers (C) Individuals (D) State.
40. Public Pensions are funded in the following manner: A) Earn as you Go (B) Take as you go (C) Spend as you go (D) Pay as you go .
41. Which of the following is incorrect? (A) Many developed countries provide pension to alleviate poverty. (B) These pensions are sufficient to maintain a modest life style (C) A & B are correct (D) A & B are wrong.
42. Who provides Occupational pensions? (A) Insurance companies (B) Employers (C) Individuals (D) State .
43. Which is a type of Occupational pension? (A) Defined Benefit type (B) Defined contribution type (C) Both correct (D) Both wrong .
44. Under Defined Benefit type, the benefit payable is independent of – (A) Contributions (B) Investment earnings (C) Both correct (D) None correct .
45. Quantum of pension under Defined Benefit type would depend on – (A) Accrual rate (B) Salary (C) Pensionable service (D) All the above .
46. Type of Occupational pension scheme - (A) Uninsured pension scheme (B) Insured Pension scheme (C) Both right (D) Both wrong.
47. A pension scheme in which the employer manages fund through a trust and pays pension thro purchase of an annuity from a life insurance company is called (A) Uninsured pension scheme (B) Insured Pension scheme (C) Both right (D) Both wrong.
48. A pension scheme in which the funds are managed by the insurance company is called – (A) Uninsured pension scheme (B) Insured Pension scheme (C) Both right (D) Both wrong .
49. Which type of Occupational pension has fallen into trouble in recent times: A. Defined Benefit type B. Defined contribution type (C) Both correct (D) Both wrong .
50. Employers throughout the world has migrated from …… …. to ………… in recent times. (A) Defined contribution to Defined Benefit (B) Defined Benefit to Defined Contribution (C) Both are correct (D) Both are wrong .
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