Insurance is legitimate
A. When an adverse happening is likely
B. When an adverse happening is unlikely
C. When an adverse happening is certain
D. In all the above three situations
Select an option to see the answer and solution.
Insurance benefits replace
A. All physical losses, in full
B. All physical losses, partly
C. All monetary losses, in full
D. The monetary losses, but only to some extent
Select an option to see the answer and solution.
Which of the following statements is correct?
A. Insurance is a kind of investment
B. Insurance is nothing but a gamble
C. Insurance is risk transfer through risk pooling
D. Insurance is a charity
Select an option to see the answer and solution.
What are the reason(s) for increase in health insurance in India?
A. Health consciousness
B. Increased longevity
C. Increase in income
D. All of the above
Select an option to see the answer and solution.
Which of the following statements is not correct?
A. One should avail potential tax saving opportunities
B. Purpose of tax saving is to minimize taxes and not to evade them
C. Tax planning helps to gain maximum advantage of tax laws
D. Tax planning is illegal in India
Select an option to see the answer and solution.
Insurability of women is governed by
A. Need for insurance
B. Capacity to pay premiums
C. Both A & B
D. None of the above
Select an option to see the answer and solution.
Which of the following is not correct with regards to insurable interest?
A. Father taking out insurance policy on his son
B. Spouses taking out insurance on one another
C. Friends taking out insurance on one another
D. Employer taking out insurance on employees
Select an option to see the answer and solution.
Which of the following options is correct?
A. Premium paid by a client for health cover enjoys income tax deduction under section 80C of the Income Tax Act
B. Premium paid towards health cover earns income tax rebate under section 80D of the Income Tax Act
C. Premium paid for a health cover does not qualify for tax benefit under any provision of the Income Tax Act
D. There is no upper limit to sum assured in a health insurance policy
Select an option to see the answer and solution.
State the incorrect statement of the following ones.
A. Premium for an MRP as a collateral for a bank loan need not be paid as the bank is expected to pay the same
B. Keyman life policy can compensate for losses incurred due to stoppage of work, following the absence of the keyman from work
C. Keyman life policy proceeds can be set off against lost income from lost business
D. Keyman can provide compensation to protect profits
Select an option to see the answer and solution.
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.
A. Higher, higher
B. Lower, higher
C. Higher, lower
D. Faster, slower
Select an option to see the answer and solution.
Which of the following is not a traditional type of product offered by insurance companies?
A. Whole life plan
B. Endowment plan
C. Moneyback plan
D. ULIP
Select an option to see the answer and solution.
Which of the following is incorrect with regards to portfolio method?
A. The total investment return is shared between policyholders
B. No attempt is made to distinguish between investments of previous years over current investments
C. This method gives homogenized rates of return
D. None of the above
Select an option to see the answer and solution.
Traditional cash value plans are also known as
A. Unbundled plans
B. Bundled plans
C. Annuity
D. ULIP
Select an option to see the answer and solution.
To whom should licence fees be paid?
A. Controller of Insurance
B. The Insurer
C. The IRDA
D. None of the three
Select an option to see the answer and solution.
In a standard insurance policy document, the standard provisions section will have information on which of the following?
A. Date of commencement, date of maturity and due date of last premium
B. Name of the nominee
C. The rights and privileges and other conditions which are applicable under the contract
D. The signature of the authorized signatory and policy stamp
Select an option to see the answer and solution.
_________ is an annuity with an infinite life and continuous annual payments.
A. APR
B. Amortized loan
C. Perpetuity
D. Principal
Select an option to see the answer and solution.
It would be advantageous to go for a family floater rather than non-floater due to the reason that
A. Higher cover would help any family member in case of high cost treatment
B. Premiums are considerably lower than where cover is taken for individual members
C. Both A & B
D. None of the three
Select an option to see the answer and solution.
Declined life means
A. Life to which insurance could be granted
B. Life to which insurance cover could not be granted at affordable cost
C. Both A & B
D. None of the above
Select an option to see the answer and solution.
Which of the following statements is correct?
A. Risk prevention aims at avoidance of loss through insurance
B. Chances of risk are reduced by retention of risk
C. Loss prevention is nothing but retention of risk
D. Chances of occurrence of risk are achieved through transfer of such risks
Select an option to see the answer and solution.
When an underwriter has to be very careful?
A. When sum insured is very small
B. When sum insured is very large
C. When income is very small
D. When income is very high
Select an option to see the answer and solution.