Which of the following statements are correct?
A. Statement i is correct
B. Statement ii is correct
C. Both statements i and ii are correct
D. None of the three
Select an option to see the answer and solution.
Which of the below losses are covered under keyman insurance?
A. Property thef
B. Losses related to the extended period when a key person is unable to work
C. General liability
D. Losses caused due to errors and omission
Select an option to see the answer and solution.
Of 400 houses costing each Rs.20, 000 if on an average 4 houses are damaged in fire causing a total loss of Rs80,000 what should be the annual contribution of each house owner.
A. Rs.800
B. Rs.200
C. Rs.100
D. Rs.400
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The losses of a few are shared amongst many through the mechanism of –
A. Nuclear family
B. Insurance
C. Government
D. All of the above
Select an option to see the answer and solution.
_________ consists of collecting premiums from numerous individuals to compensate the few who may suffer losses.
A. Pooling
B. Contract
C. Guarantee
D. IRDA
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Secondary burden of risk consists of _________ and _________ one has to bear if exposed to loss situation.
A. Trials, tribulations
B. Costs, Strains
C. Situations, Safeguards
D. Circumstances, Conflicts
Select an option to see the answer and solution.
_________ and _________ refer to measures to reduce chance of occurrence and measures to reduce degree of losses.
A. Loss Prevention, Loss damage
B. Loss Control, Loss management
C. Loss advantage, Loss prevention
D. Loss Prevention, Loss Reduction
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Cost of the risk would _________ with the probability and amount of loss
A. Increase
B. Decrease
C. Vary
D. None of the above
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_________ means that insurer would assess and compensate only the exact amount of loss.
A. Certainty
B. Uncertainty
C. Probability
D. Indemnity
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Proximate Cause refer to the _________ cause which set in motion a chain of events producing loss.
A. Active
B. Efficient
C. A & B are correct
D. None of the above
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_________ is the maximum amount an insurance company will pay if an insured asset is deemed a total loss.
A. Insurance value
B. Actual value
C. Replacement value
D. Guaranteed Replacement Cost
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Nikhil is looking for tax-efficient savings methods for his disposable income. He is considering an equity-linked savings scheme, national savings certificates and an endowment insurance policy. Premiums for which of these investments are allowed to be deducted from his taxable income?
A. The national savings certificates only
B. The equity-linked savings scheme and the national savings certificates only
C. The national savings certificates and the endowment insurance policy only
D. The equity-linked savings scheme, the national savings certificates and the endowment insurance policy
Select an option to see the answer and solution.
An investor holds a wide range of shares. If the Reserve Bank of India announces a series of significant interest rate increases, the prices of these shares are most likely to
A. Become volatile
B. Decrease
C. Increase
D. Stagnate
Select an option to see the answer and solution.
The main purpose of the guaranteed insurability rider benefit is to give the policyholder the right to
A. Cancel a health-based exclusion after a symptom-free period
B. Include his parents under the policy
C. Increase cover when a key life event occurs
D. Maintain cover despite a fall in investment value
Select an option to see the answer and solution.
The changes in healthcare costs over recent years has had what general impact on healthcare insurance?
A. A fall in average premium levels
B. A reduction in underwriting requirements
C. A rise in the need for cover
D. A strengthening of the insurable interest rules
Select an option to see the answer and solution.
The general need for a pension policy results from the existence of what key problem?
A. Anticipated fall in income
B. Lack of employment opportunities
C. Likely deterioration in health
D. Uncertainty over investment performance
Select an option to see the answer and solution.
Yash pays health insurance premiums for himself, his wife and his two children aged 13 and 8. Premiums for which of these individuals will qualify as deductible from Yash’s taxable income?
A. Yash only
B. Yash and his wife only
C. Yash, his wife and his oldest child
D. Yash, his wife and both his children
Select an option to see the answer and solution.
The sole focus during a client’s fact-find session was healthcare requirements and estate planning. Which main life stage is the most likely to fall into?
A. Young married
B. Young married with children
C. Pre-retirement
D. Retirement
Select an option to see the answer and solution.
Apart from the salary level, what another key feature of Alok’s job is likely to have a major impact on the level of his pension, life insurance, and health insurance needs?
A. Whether the job is office or field-based
B. The normal retirement age in relation to the job
C. Whether the job is in the public or private sector
D. Whether the job is manual or non-manual
Select an option to see the answer and solution.
Insurance works on the principle of
A. Trust
B. Sharing
C. Randomness
D. All of the above
Select an option to see the answer and solution.
