IC23 APPLICATIONS OF LIFE INSURANCE – 24

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Que. 1 : Q1) No commission is payable under this type of
business as such factors will be taken into account when arriving at the rate
for the treaty though brokerage is determined separately?

   1.  a) Fire and accident proportional
reinsurance

   2.  b) Non-proportional reinsurance

   3.  c) Marine proportional reinsurance

   4.  d) Proportional reinsurance

Que. 2 : Q2) Which policy is aimed at compensation for death
or bodily injury suffered directly as result of accident and the sum assured
payable payable varies with extent of damage i.e.100% of sum assured in case of
death due to accident?

   1.  a) Unit linked health policies

   2.  b) Disability income insurance

   3.  c) Long-term care insurance

   4.  d) Personal accident policy

Que. 3 : Q3) Which clause specifies that in the event of any
portion of the limit of cover being reduced by settlement of a loss, the amount
of limit of cover so reduced will be automatically reinstated from the time of
commencement of the loss occurrence until the expiry of the agreement?

   1.  a) Ultimate Net loss clause

   2.  b) Reinstatement clause

   3.  c) Net retained Lines clause

   4.  d) Loss occurrence definition clause

Que. 4 : Q4) Which involves accepting the loss when it
occurs and it a good strategy only when it is impossible to transfer the risk
or based on an evaluation of the economic loss exposure, it is determined that
the diminutive value placed on the risk can be safely absorbed?

   1.  a) Risk avoidance

   2.  b) Risk retention

   3.  c) Risk transfer

   4.  d) Risk avoidance

Que. 5 : Q5) Which methods involves that reduce the severity
of the loss and examples include sprinklers designed to put out a fire to
reduce the risk of loss by fire?

   1.  a) Risk reduction

   2.  b) Risk retention

   3.  c) Risk transfer

   4.  d) Risk avoidance

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