Insurance

1. In Universal life products, larger the size of the premium,_________ the coverage provided and _________ the policy cash value.

Smaller, larger
Larger, smaller
Smaller, Smaller
Larger, larger

Detailed SolutionIn Universal life products, larger the size of the premium,_________ the coverage provided and _________ the policy cash value.

2. Universal life insurance is characterized by

Flexible premiums
Flexible face amount
Death benefit
All of the above

Detailed SolutionUniversal life insurance is characterized by

3. Which was the major motive for people going for nontraditional products?

Flexibility
Wealth accumulation
Transparency
All of the above

Detailed SolutionWhich was the major motive for people going for nontraditional products?

4. The major appeal for non-traditional products was in terms of

Inflation beating returns
Direct linkage with investment gains
Flexibility & Higher surrender value
All of the above

Detailed SolutionThe major appeal for non-traditional products was in terms of

5. Non-traditional products are also known as

Unbundled plans
Bundled plans
ULIP
Annuity

Detailed SolutionNon-traditional products are also known as

6. In respect of Traditional cash value plans, which is incorrect:-

Bonuses do not reflect the investment performance of the insurer
The method for arriving at surrender value is not easily visible
Cash value component is well defined
None of the above

Detailed SolutionIn respect of Traditional cash value plans, which is incorrect:-

7. Inter temporal allocation of resources means allocation of resources across _________

Needs
Sectors
Space
Time

Detailed SolutionInter temporal allocation of resources means allocation of resources across _________

8. The method in which Profits of the ins.co. could be shared in the form of dividends are

Portfolio method
Current money method
Both A & B
None of the three

Detailed SolutionThe method in which Profits of the ins.co. could be shared in the form of dividends are

9. Which of the new guidelines for traditional products is not true?

For participating policies, bonus is linked to performance of the fund
Bonus once announced becomes a guarantee
Such a bonus is called Terminal Bonus
For Non-par policies, returns are disclosed at the beginning of the policy

Detailed SolutionWhich of the new guidelines for traditional products is not true?

10. Which of the following statement is correct in respect of Endowment policy?

Shorter the policy term, lesser the investment element
Shorter the policy term, larger the investment element
Longer the policy term, larger the investment element
Term and investment element do not bear any relationship

Detailed SolutionWhich of the following statement is correct in respect of Endowment policy?

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