Sheet1State whether the following statements are TRUE or FALSE

1 Principle of large numbers is applicable to the InsuranceTRUE

2) Under which policy replacement cost of the loss is paid by the Insurer?Life insurance contract is long term contract true

3)In life insurance premium payable changes every year of the contract false

4)In life Insurance premium depends on the age of the Insured true

5In life Insurance Net premium is the chargeable premium false

6)Long term sickness is the unpredictable event true

7)Income needed in the retirement is unpredivtable event false

8)Financial planning is the process of making advance provision for the financial needs arising in future true

9)In life insurance contract absense of insurable interest does not render the contract void. false

10)Every person possesses unlimited insurable interest in his own life true

PLEASE TICK THE CORRECT ANSWER FROM THE CHOICES GIVEN

a) to the extent of his liabilitiesc- to the extent of his debtsb) to the extent of his liabilities11A creditor has insurable interest in life of the debtorc) to the extent of his debtsd) Unlimited. 12)A policyholder transfers his rights under a policy to another person. this is called a) Nomination b-assignment b) Assignment c) Surrender d) Deferment 13)Level premium means a) Uniform premium in earlier half term of the policyd-Uniform premium throughout the term b) Increasing premium with the term of the policy c) Decreasing premium with the term of the policy d) Uniform premium throughout the term of the policy. 14)In life insurance insurable interest is to be proved a) Only at the time of taking the insurancea-only at the time of taking the insurance b) At the time of claim c) At the time of taking the policy and also at the time of claim d) None of the above. 15)Under Term assurance policy sum assured is payable a) Only on survival at the end of the policy termb-only on thr death during the term of the policy b) Only on death during the term of the policy c) On both the contingencies as in a) and b) above d) None of the above.b-invrstment plan 16)ULIP plan is a) Protection plan b) Investment plan c) Both protection and investment plan d) None of the above. 17)As per sec.45 of the Insurance act 1938early death clam is one that occurs a) Within one year of the policyb-within two years of policy b) Within two years of the policy c) Within three years of the policy d) None of the above. 18)Where the life policy is absolutely assigned the death claim amount is paid to a) To the assigneea to the assignee b) To the legal heirs of the insured c) To the original nominee under the policy d ) Jointly to the a) and c) above. 19)Life Insurance policies cover which type of risk? a) Risk of unexpected early deathc- both of the a) and b) above b) Risk of living too long c) Both of the a) and b) above d) None of the above. 20)Mr. XYZ has taken an Insurance plan for Rs. 10 lakhs for 15 years which stipulates thata) Term assurance planb-pure endowment planSum assured will be paid only if Mr. XYZ survives the policy tenure of 15 years. Which type is this plan ?b) Pure endowment planc) Endowment pland) Whole life plan. 21)How are the risks are measured in General Insurance ? a) The cost of actual lossc- the likely loss that may occur if the peril strikes b) The cost of consequential loss c) The likely loss that may occur if a peril strikes d) The like hood for a peril striking 22)PML (Probable Maximum loss) is determined by MPL (Maximum Loss) and a) The probability of the peril strikinga-the probability of the peril strikimg b) The cost of actual loss c) the cost of consequential loss d) None of the above 23)If the cost of damages is met through internal resource, how the risk is managed? a) Preventiond- retaining b) Transfer c) Reduction d) Retaining 24)The Proposers payment of consideration is known as a) Enrollment feeb- premium b) Premium c) Installment d) Bonus

25)Export and Import risks are covered by a-IRDA b-Depoosit insurance and credit gurantee Corporstionc-Export Credit and Gurantee Corporation c-Export Credit and Gurantee Corporation d-Life Insurance Corporation 26)Life Insurance Corooration of India was formed on a)1st January 1956b-1st September 1956 b) 1st September 1956 c)- 1st January 1956 d)- 1st September 1947 27)Which of the four is the Reinsurance company a)-General Insurance Corporationa-General Insurance Corporation b)- Life Insurance Corpotation c) Oriental Insurance company d)-Unitrd insurance Company 28) What treatmrnt is given by the insurer to the difference between Rvnenue and expenses a) It is included as profitc-held in reserve to pay the claims cost b) It is paid to shareholders as dividend c) Hald in reserve to play the claim cost d) Reurned to the policy holdrers29 An arrangement wherein the reinsurer steps only if the loss excceds the certin limit is called as a) Excess of loss a-excess of loss b) Quota share c) Ceding d)Pool arrangement30 Where would insurer find the guidelines for investments a) IRDA regulationsc- The Insurance Act b) Company guidelines c)The Insurance Act d) None of the above31 Insurer mansges the risk by a) transfera- transfer b) retention c) avoidance d None of the above b)- an attempt to screen out the sub standard lives32Underwriting is a) where insurer decides the premium chargeable b) an attempt by the insurer to screen out the sub standard lives c) exercise by the insurer to deny the insurance d) none of the above33 TPA should have the educational qualification of a) of graudation c)-passing of a course course on Hospital Management b) passing of MBA c) passing of course on Hospital Management d) none of the above34 Which is the Dept. of an insurance company that settles the claim a) setvicing dept.a)- servicing dept. b) marketing dept. c) acturial dept. d) new business dept.35 Which is the dept. of an insurance company that deals with the selection of the risk a ) underwriting dept.a)- underwriting dept.. b) servicing dept. c) matketing dept. d) customer relations dept.36 part of the policy money paid to the policy during the term of the policy is termed as a) survival benefit claima-survival benefit claim b) mid-term claim c)ex-gratia claim d)maturity claim37claim paid to the policy holder at the end of the policy term is known as a)survival claimb-matutity claim b) maturity vlaim c) end term claim d) surrender38 policy money paid to the policy holder before the policy term at the request of the policy holder is a) mid term claim c-surrender of the policy b) policy closure c) surrender of policy d) none of the above39Nomination is governed under b- section 39 of the insurance acy1938 a) section 38 of insurance act 1938 b)section 39 of insurance act 1938 c) section 40 of insurance sct 1938 d) none of the above40 Assignment of the life policy a) suspends the nominationb)- cancels the nomination b)cancels the nomination c) does not affect the nomination d) continues at the request of the life assured 41A policy holder transfers his rights under the policy to another person. This is called a)transfer of rights c- assignment b) Surrender of rights c) Assignment d) Deferement of rights42The person who assesses the risk associated with the life proposal is called a) Actuary b-underwriter b) underwriter c) Arbitrator d) Assessor43floating policy a) is policy with floating rates c- insures goods of different tyoes and at different locations b) policy where value is determined at the time of the claim c) insures goods of different types and at different locations d) is the policy where value of the policy varies during contract44specic policy is for a) specific periodd- All the avove b) specific property c) specific sum d) all the above45Rienstatement policy is a)policy started again after lapse c-where property is restored to the state before destruction b)continued after the term c) where property is restored to the state before destruction d) none of the above46 The terrorist risk cover fund pool is managed by a) govt. of India.d- Genrral Insurance Corporation b) IRDA c)LIC Of India d) General Insurance Corporation47 Fraud and dishinesty of the employees is covered by a) Dishonesty insurance b) fraud insurance c) Dishonesty and fraud insurance d) Fidelity gurantees insurance48 which of the following statement is false a) coinsurance is sharing of risks between insurers d-Insured has a contractual relationship with the reinsurer b)The reinsurer is the insurer of the insurer c) Insurer has contractualrelatinship with the insurer d) Insured has a contractual relationship with the reinsurer49 hull insurance under marine insurance is a) cargo insurane c-insurance of vessel and its equipments b)cargo and fright insurance c) insurance of vessel and its equipments d insurave of cargo and crew on the board50 The freight can be insured under marine insurance a) when it is pre paid b) when it is post paid b) when it is post paid c) both the a) and b) above d) when it is partially paid51In a life cycle which of the following is not a predictable need a) children's education d- Death of the income provider b) Income at retirement c) capital for purchase of house d) Death of the income provider52 which of the fillowing is not a life cycle stage a)childhoodc- old unmarried b) young married c) old unmarried d) post retirement53Insurance cotract is void if the party to the contract is a) unemployed c- minor b) handicapped c) minor d)Non resident Indian 54Find out where the insurable interest does not exsists a) husbsnd-wifec-seller- customer b) creditor-debtor c) seller-customer d) employer-employee 55policy reserve of the insurer is a) profit b- liability b) liability c)profit before tax d) none of the above56 as per Life insurance act 1956 valuation of liabilities of the insurer is to be done a) every yeara- every year b) every two years c) every three years d) every four years57EDLI is a)Employees Deposit Linked Insurance schemea-Employees Deposit linked Insurance scheme b) Employees Debt Linked Insurance scheme c) Employees Data Linked Insurance scheme d) Employees Diversity Linked Insurance scheme58 IRDA was formed in the year a)2000c-in the year 1999 b)2001 c)1999 d)200359 The consumer protection act was enacted in the year a)1983d-1986 b) 1984 c)1985 d) 198660IRDA has its head quarter at a) Mumbaic- Hyderabad b) Bangalore c)Hyderabad d)Chennai61which one is not the method of surplus distribution a) simple reversionary d)ad hoc b) compound reversionary c)interim d)ad hoc62 Mortality rate a) increases with the age a-increases with age b) decreases with age c) remains constant in early age d)remains constant in later years of age63Policy reserve can be calculated by a) Prospective method c-both the methods a) and b) b) Retrospective method c) both the methods a) and b) d)None of the above methods64 damages due to wrongful acts of Directors and Officers while managing company affairs are covered under a) director and officers individual policyc-directors and officefs liability policy b) pool of fund formed by the company c) directors and Officers liability policy d)terminal benefits of the director and officer 65 PML is a) permanent maxinun loss c-probable maximum loss b)permanent minium loss c)probable maxium loss d) probable minium loss66Which is not the physiological human need a )securitya-security b) food c) shelter d) clothing67ceding a) passing the riska-passing the risk b) retaining the risk c)reducing the risk d)avoiding the risk68 solvency margin in general insurance is a) 20% of the net premium or 30% of the increased claims whichever is higher a-20% or the net premium or 30% of the increased claims b) 20% of the increased claims or 30% of the net premium whivhever is hig c)50% of the net increased claims d) 50% of the net premium69Sub standard life is the person a) who has less incomed- who has higher mortality than the normal mortality b)who is of higher age c ) who is minor in age d) who has higher mortality than the normal mortality70 which of the following is not a physical hazard a) certain diseasesb-ongaged in aviation b) engaged in aviation c) family longevity d)excessive body weight71Retrosession means a) sharing insurance with other insurerd-reinsurer insuring with the other insurer b) curtailing the risk c) avoiding the risk d) reinsurer insuring with the other insurer72 appointment of the insurance Ombudsman is done by a)IRDA b-Govt.of India b)Govt. of India c)GIC and LIC d) by chief justice o f india73No default liability under motor vehicle act means a) no liability ,if no default b) liability of both the claimant an the vehicle ownerc-claimant need not prove the fault of the vehicle owner c)claimant need not prove the fault of the vehicle owner d)claimant has to justify the claim74 which of the items are covered under money in transit insurance a)cash a-cash and d- postal orders b)cntract documents c) gold ornaments d) postal orders75 In group insurance group to be insured should be a)large a- large and b-faitly homogenius b)fairly homogenius c) of age below 40 d) of all the above characteristics 76in group insurance profit sharing is done by way of a)-cash bonusc-reduction in renewal premium b) ex gratia bonus c) reduction in renewal premium d)reversionary bonus 77product liability policy does not cover a)damages arising out of injuriesd- cost of repairing b) damages arising out of death c) damages to the property d cost of repairingMATCH THE NEEDS IN COLUMN B WITH THE PRODUCTS IN THE COLUMN C a)-at the time of the contractb-at the time of the claim b)-at the time of the claim c) both at the times of contract and claim d) none of the above78INSTANT ACCESS TO FUNDa) ANNUITY CERTAIN FOR 20 YEARS PENSIONd-saving bank depositt

79ASSURED GUARANTED INCOME b) ULIPc- Govt. Security corporate bonds, debentures80ASSURED IMMEDIATE MLY INCOME FOR 20YRSc) GOVT SECURITY CORPORATE BOND DEBENTUREa-annuity certain for 20years pension

81MAXIMUM GROWTH OF INVESTIBLE FUNDd) SAVINGS BANK DEPOSITb-ulip TICK THE CORRECT ANSWERS FROM THE CHOICES GIVEN a) intervening cause c- direct and d) non intervening b) indirect csuse82Proximate cause is the c) direct cause d) non intervrning cause83Fund for hit snd run cases is called as a) Hit and run fundc-solatium fund b) Emergency fund c) Solatium fund d)liquid fund84nomination under the life policy can br done by the policy holder a) at the time of taking the policy only c-at any time but before maturity of the policy b) at any time but within 2 years of the policy c) at any time but before maturity of the policy at any time but within one year of the policy85In the Decclaration policy under fire Insurance initial premium paid is at the rate of a) 80% of the initial declarationb-75% of the initial declaration b)75% of thr initial declaration c)50%vof the initial declaration d) 60% of the initial declarationc-cancels the nomination86assignment a)suspends the nomination b) does not affect the nomination c)cancels the nomination d) suspends or cancels asper desire of the policy holder 87 on the death of the assignee rights under the policy will vest a) policy holderb-legal heirs of the assignee b)legal heirs of the assignee c) both a) and b) above d)in the person as directed by the court of law88Early death claim is investigated by the a) an officer of the insurera- an officer of the insurer b) surveyor c)investigating agency d) IRDA personnel89which policy provides for loss due tostoppage of work a)consequential loss policy a-conswquential loss policy b)floating policy c) declaration policy d)secific policy90As per section 45 of the insurance act 1938 the burden 0f proof lies with the insurer for repudiating the claim a) within 1 year of the policyc- after 2 years of the policy for the statements false and material to the risk ,if claim occurs b) within2 years of the policy c) after 2 years of the policy d) none of the above91which is not the step in risk managemenr a)risk assessmentc-risk pricing b)risk transfer c) risk pricing d) risk evaluation 92factors for measuring the risk are a) probabilitya-probability and b-severety b)severety c ) ownership d) financial93Which of the following is not relevant to the insurance a) the Indian penal code a- The Indian penal code b)The Indian contract act c) The Indian stamp act d)Thr consumer protection act94 under motor vehicle third party insurance- this is not covered a) personal injury to third party c-damage to vehicle b) death of third party c) damage to vehicle d) damage to third party property95The period within which the policy holder can revoke the life insurance contact is called as a) initial periodd-cooling off period b) gestation period c) mandatoty period d) cooling off period96Under ULIP type of policy opting one type of investment fund from the other type of fund is called as a) change over of thfundc- Switch over the fund b)shift over of the fund c)Switch over of the fund d)Opting of the fund97ESIC is a) Employees SpecialIinsurance Corporationc- Employees State Insurance Corporation b) Employees Strategic Insurance Corporation c) Employees State Insurance Corporation d) Employees Sole Insurance Cprporation98motor vehicle act amendment of 1999 provides for a) fixed compensation to the accident victimd- compensation based on age and income of the victim b)compensation based on age of the victim c)compensation based on income of the victim d) compensation based on age and income of the victim99 GSLI is b-Group Savings Linked Scheme a) Group Superannuation linked Scheme b) Group Savings Linked Scheme c) Group Social Linked Scheme d) Group Society linked Scheme 100in general insurance maximum amount the insurer wishes to keep on risk is known as a) Capacity b-Retention b) Retention c) Ceding d) Maximum limitColumn B--The Questions /Statements Column C - Multiple Choices / mactching statements Column D-Correct choice/s /Matches EACH question carries 1 mark. No negative matks.

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