which among following true? I. Life insurance policies are contracts of indemnity while general insurance policies are contracts of assurance II. Life insurance policies are contracts of assurance while general insurance policies are contracts of indemnity III. In case of general insurance the risk event protected against is certain IV. The certainty of risk event in case of general insurance increases with time .
Which among the following methods is a traditional method that can help determine the insurance needed by an individual? I. Human Economic Value II. Life Term Proposition III. Human Life Value IV. Future Life Value .
Which of the below is the most appropriate explanation for the fact that young people are charged lesser life insurance premium as compared to old people? I. Young people are mostly dependant II. Old people can afford to pay more III. Mortality is related to age IV. Mortality is inversely related to age .
Which of the below is not an advantage of cash value insurance contracts? I. Safe and secure investment II. Inculcates saving discipline III. Lower yields IV. Income tax advantages .
Which of the below is an advantage of cash value insurance contracts? I. Returns subject to corroding effect of inflation II. Low accumulation in earlier years III. Lower yields IV. secure investment .
1.An individual with an aggressive risk profile is likely to follow wealth investment style. I. Consolidation II. Gifting III. Accumulation IV. pending .
Which among the following is a wealth accumulation product? I.Bank Loans II. Shares III. Term Insurance Policy IV. Savings Bank Account .
Savings can be considered as a composite of two decisions. Choose them from the list below I. Risk retention and reduced consumption II. Gifting and accumulation III. Spending and accumulation IV. Postponement of consumption and parting with liquidity .
During which stage of life will an individual appreciate past savings the most? I. Post retirement II. Earner III. Learner IV. Just married .
What is the relation between investment horizon and returns? I. Both are not related at all II. Greater the investment horizon the larger the returns III. Greater the investment horizon the smaller the returns IV. Greater the investment horizon more tax on the returns .
Which among the following can be categorised under transactional products? I. Bank deposits II. Life insurance III. Shares IV. Bonds .
Which among the following can be categorised under contingency products? I. Bank deposits II. Life insurance III. Shares IV. Bonds .
Which of the below can be categorised under wealth accumulation products? I. Bank deposits II. Life insurance III. General insurance IV. Shares .
-------is a rise in the general level of prices of goods and services in an economy over a period of time I. Deflation II. Inflation III. Stagflation IV. Hyperinflation .
Which of the below is not a strategy to maximize discretionary income? I. Debt restructuring II. Loan transfer III. Investment restructuring IV. Insurance purchase .
life insurance pays off a policyholder's mortgage in the event of the person's death. I. Term II. Mortgage III. Whole IV. Endowment .
The the premium paid by you towards your life insurance, the will be the compensation paid to the beneficiary in the event of your death I. Higher, Higher II. Lower, Higher III. Higher, Lower IV. Faster, Slower .
Which of the below option is correct with regards to a term insurance plan? I. Term insurance plans come with life-long renewability option II. All term insurance plans come with a built-in disability rider III. Term insurance can be bought as a stand-alone policy as well as a rider with another policy IV. here is no provision in a term insurance plans to convert it into a whole life insurance plan.
In decreasing-term insurance, the premiums paid over time I. Increase II. Decrease III. Remain constant IV. re returned .
Using the conversion option present in a term policy you can convert the same to . I. Whole life policy II. Mortgage policy III. Bank FD IV. Decreasing term policy .
What is the primary purpose of a life insurance product? I. Tax rebates II. Safe investment avenue III. Protection against the loss of economic value of an individual‟s productive abilities IV. Wealth accumulation .
Who among the following is best advised to purchase a term plan? I. An individual who needs money at the end of insurance term II. An individual who needs insurance and has a high budget III. An individual who needs insurance but has a low budget IV. An individual who needs an insurance product that gives high returns .
Which of the below statement is incorrect with regards to decreasing term assurance? I. Death benefit amount decreases with the term of coverage II. Premium amount decreases with the term of coverage III. Premium remains level throughout the term IV. Mortgage redemption plans are an example of decreasing term assurance plans .
Which of the below statement is correct with regards to endowment assurance plan? I. It has a death benefit component only II. It has a survival benefit component only III. It has both a death benefit as well as a survival component IV. It is similar to a term plan .
Which of the below is an example of an endowment assurance plan? I. Mortgage Redemption Plan II. Credit Life Insurance Plan III. Money Back Plan IV. Whole Life Plan .
What does inter-temporal allocation of resources refer to? I. Postponing allocation of resources until the time is right II. Allocation of resources over time III. Temporary allocation of resources IV. Diversification of resource allocation .
Which among the following is a limitation of traditional life insurance products? I. Yields on these policies is high II. Clear and visible method of arriving at surrender value III. Well defined cash and savings value component IV. Rate of return is not easy to ascertain .
Where was the Universal Life Policy introduced first? I. USA II. Great Britain III. Germany IV. France .
Who among the following is most likely to buy variable life insurance? I. People seeking fixed return II. People who are risk averse and do not dabble in equity III. Knowledgeable people comfortable with equity IV. Young people in general .
Which of the below statement is true regarding ULIP‟s? I. Value of the units is determined by a formula fixed in advance II. Investment risk is borne by the insurer III. ULIP‟s are opaque with regards to their term, expenses and savings components IV. ULIP‟s are bundled products .
All of the following are characteristics of variable life insurance EXCEPT: I. Flexible premium payments II. Cash value is not guaranteed III. Policy owner selects where savings reserve is invested IV. Minimum Death benefit is guaranteed .
Which of the below is correct with regards to universal life insurance?
Statement I: It allows policy owner to vary payments Statement II: Policy owner can earn market based rate of return on cash value
I. I is true II. II is true III. I and II are true IV. I and II are false .
All of the following is true regarding ULIP‟s EXCEPT: I. Unit holder can choose between different kind of funds II. Life insurer provides guarantee for unit values III. Units may be purchased by payment of a single premium or via regular premium payments. IV. ULIP policy structure is transparent with regards to the insurance expenses component.
As per IRDAI norms, an insurance company can provide which of the below non-traditional savings life insurance products are permitted in India? Choice I: Unit Linked Insurance Plans Choice II: Variable Insurance Plans I. I only II. II only III. I and II both IV. Neither I nor II .
What does unbundling of life insurance products refers to? I. Correlation of life insurance products with bonds II. Correlation of life insurance products with equities III. Amalgamation of protection and savings element IV. Separation of the protection and savings element .
The sum assured under keyman insurance policy is generally linked to which of the following? I. Keyman income II. Business profitability III. Business history IV. Inflation index .
Mortgage redemption insurance (MRI) can be categorised under . I. Increasing term life assurance II. Decreasing term life assurance III. Variable life assurance IV. Universal life assurance .
Which of the below losses are covered under keyman insurance? I. Property theft II. Losses related to the extended period when a key person is unable to work III. General liability IV. Losses caused due to errors and omission .
A policy is effected under the MWP Act. If the policyholder does not appoint a special trustee to receive and administer the benefits under the policy, the sum secured under the policy becomes payable to the I. Next of kin II. Official Trustee of the State III. Insurer IV. Insured .
Mahesh ran a business on borrowed capital. After his sudden demise, all the creditors are doing their best to go after Mahesh‟s assets. Which of the below assets is beyond the reach of the creditors? I. Property under Mahesh‟s name II. Mahesh‟s bank accounts III. Term life insurance policy purchased under Section 6 of MWP Act IV. Mutual funds owned by Mahesh .
Which of the below option is true with regards to MWP Act cases? Statement I: Maturity claims cheques are paid to policyholders Statement II: Maturity claims cheques are paid to trustees I. I is true II. II is true III. Both I and II are true IV. Neither I nor II is true .
Which of the below option is true with regards to MWP act cases? Statement I: Death claims are settled in favour of nominees Statement II: Death claims are settled in favour of trustees I. I is true II. II is true III. Both I and II are true IV. Neither I nor II is true .
Ajay pays insurance premium for his employees. Which of the below insurance premium will not be treated deductible as compensation paid to employee?
Choice I: Health insurance with benefits payable to employee
Choice II: Keyman life insurance with benefits payable to Ajay
I. I only II. II only III. Both I and II IV. Neither I nor II .
The practice of charging interest to borrowers who pledge their property as collateral but leaving them in possession of the property is called I. Security II. Mortgage III. Usury IV. Hypothecation .
Which of the below policy can provide protection to home loan borrowers? I. Life Insurance II. Disability Insurance III. Mortgage Redemption Insurance IV. General Insurance .
What does the term “premium” denote in relation to an insurance policy? I. Profit earned by the insurer II. Price paid by an insured for purchasing the policy III. Margins of an insurer on a policy IV. Expenses incurred by an insurer on a policy .
Which of the below is not a factor in determining life insurance premium? I. Mortality II. Rebate III. Reserves IV. Management expenses .
What is a policy withdrawal? I. Discontinuation of premium payment by policyholder II. Surrender of policy in return for acquired surrender value III. Policy upgrade IV. Policy downgrade .
Which of the below is one of the ways of defining surplus? I. Excessive liabilities II. Excessive turnover III. Excess value of liabilities over assets IV. Excess value of assets over liabilities .
Which of the below is not a component of ULIP premiums? I. Policy allocation charge II. Investment risk premium III. Mortality charge IV. Social security charge .
|
