Risk Planning Weekly Test

Total points27/32
 
TEST-2

Your Name *
surekha

 
1) Clinical Trial Liability Insurance covers legal liability arising out of___________ *
0/1
a) claim as a result of a lawful act committed while performing duties
b) lack of care, negligence resulting in injury or death of a trial subject
c) death or disability occurring in clinics or hospitals due to negligence
 
d) third party damages caused due to accidents caused in test runs of automobiles and
airplanes

Correct answer
b) lack of care, negligence resulting in injury or death of a trial subject

 
2. The deductible is____________. *
1/1
a. The expenses borne by the claimant before an insurer will pay any compensation
 
b. The amount that is deducted from the premium as mortality charge
c. The amount of unpaid premiums deducted from the amount of claim
d. The sharing of costs incurred between the insurer and the insured according to a specific
formula

 
3) Under which of the following circumstances personal accident insurance benefit
shall be accepted by the insurer? *
1/1
a. Self injury due to insanity
b. Death due to gunshot in marriage party
 
c. Accident under the influence of drugs
d. Breach of law with criminal intent

 
4) The Motor Vehicles Act, 1988 regulates all aspects of road transport vehicles in
India. Which one of the following is a correct provision of Motor Insurance under
the Act? *
1/1
a) Motor insurance does not provide cover against loss or damage to the insured vehicle due
to terrorist activity.
b) The cover ensures the insured's liability in respect of only death or bodily injury to third
parties and not to damage of property of third parties.
c) The cover ensures the insured's liability in respect of death or bodily injury to third parties
and also damage to property of third parties.
 
d) As per the Act, motor insurance is optional for vehicles engaged in government essential
services.

 
5) A gas station had a leak in an underground storage tank. Within a day or two,
nearby residents noticed gasoline in their water wells. Which one of the following
liability insurances should have been taken by the owner of the gas station to cover
claims? *
1/1
a) Environmental Impairment Liability
 
b) Employer's liability
c) Product liability
d) Public liability

 
6) ABC Ltd. is in the business of manufacturing smartphones. One day, the
assembly line went wrong during the manufacturing process. Although the issue
did not affect all the phones, some of the affected phones did tend to overheat and
explode. Which one of the following liability insurance should have been taken by
ABC Ltd. beforehand? *
1/1
a) Public liability insurance
b) Employer liability insurance
c) Environmental Impairment Liability insurance
d) Product liability insurance
 
 
7) Endorsements are an important part of policy document and can be issued at
the time of purchase, mid-term or during the renewal period of the insurance policy.
Which of the following statement correctly defines the meaning of endorsement in
the context of an insurance policy? *
1/1
a) A process of transfer of the insured’s benefits to the beneficiary.
b) Insurer’s acceptance of the claim raised by the insured as per policy.
c) Insurer’s acceptance of the proposed risk.
d) It is a documentation which incorporates amendments, or additions, in the existing terms of
the policy.
 
 
8. Product liability insurance covers the risk faced by manufacturers, and sellers,
by their product or service. Which one of the following statements correctly
describe the general provision available to the insured under product liability
insurance? *
0/1
a) It provides cover for damages in consequence of accidental death/injury to third party or
loss/damage to third party property from dangerous or defective products.
b) It provides cost for recall or repair of the product, or part thereof, allegedly defective.
c) It provides cover for financial loss, such as loss of goodwill, loss of market etc., of the
insured.
d) It includes cover for damage, even if arising out of deliberate disregard to manufacturer’s
guidelines regarding use of product.
 
Correct answer
a) It provides cover for damages in consequence of accidental death/injury to third party or
loss/damage to third party property from dangerous or defective products.

 
9) In Insurance Claims which type of Tort act is covered____________ *
1/1
a. when someone causes harm (physical, emotional or Financial) to another person
intentionally
b. when someone causes harm (physical, emotional or Financial) to another person
unintentionally or intentionally
c. A wrong done to another person with criminal intent
d. when someone causes harm (physical, emotional or Financial) to another person
unintentionally
 
 
10) Suhas has a health insurance plan. The plan comes with a co-insurance
percentage of 70% up to the maximum out-of-pocket limit of Rs. 1,00,000 and a
deductible of Rs. 10,000. During the policy period, Suhas fell ill and had to spend
Rs. 75,000 for his medical treatment. What claim amount would be paid by the
insurance company to Suhas under his policy? *
1/1
a) Rs. 45,500
 
b) Rs. 52,500
c) Rs. 42,500
d) Rs. 65,000
 
11) Major comprehensive insurance products provide coverage for the large
medical expenses associated with a serious injury or long-term illness that could
become financially damaging. With high coverage limits, comprehensive medical
policies may have three cost-containment features to help keep costs down:
deductibles, coinsurance, and copayments. Lara is a member of her employer's
extended health care plan, which has a €150 annual family deductible based on a
calendar year, and provides for the employee to pay a 25% coinsurance. If Lara's
family has eligible health claims that total €4,200 this year, how much will Lara
receive as reimbursement under the health care plan? *
1/1
a) € 3,150
b) € 1,050
c) € 1,013
d) € 3,038
 
 
12) It is important for a financial advisor to help their client prioritize action steps to
assist their client's in implementing risk management strategies. Conducting a risk
management audit is the most appropriate way to begin developing and optimizing
a risk management strategy. In a risk management audit with your client, the
information gathered included the following: your client Kareena has just started
her own consulting business after a long and successful career with a major
employer but has lost employer-sponsored medical benefits. Kareena has also
been appointed as a Director to a non-profit organization board. Kareena's
successful career has enabled her to be classified as a "high net worth individual"
(HNWI). Kareena has no dependents. The insurance priorities for Kareena in the
order of most important to least important are most likely: *
1/1
a) Health insurance, life insurance, personal liability insurance.
b) Professional liability insurance, healthcare insurance, and disability insurance.
 
c) Personal liability insurance, life insurance, health insurance.
d) Life insurance, personal liability insurance, and healthcare insurance.

 
13) Harpreet wants to renew his car insurance policy. His vehicle is 5 years old and
its IDV as of date is Rs. 2.52 lakh. He has received the following quotation from his
insurer for the breakup of premiums: (Own Damage) Base Premium – Vehicle= Rs.
5,200 Premium - Electrical fittings= 7% of Base premium (Liability premium) Basic
Third Party= Rs. 2,050 Legal liability to driver= Rs. 150 No claim bonus (NCB) =
35% What would be the gross premium payable by Harpreet for his car insurance
for the coming year, ignoring the taxes? *
0/1
a) Rs. 5,817
b) Rs. 5,099
c) Rs. 5,047
 
d) Rs. 3,617

Correct answer
a) Rs. 5,817

 
14) Rohit has been working with XYZ Ltd for the last 5 years. His employer does
not provide health insurance cover to its employees. Rohit has one health policy in
his name but feels that the cover is not adequate. Which one of the following
variants of hospitalization policy can Rohit choose for adding a cover to his existing
plan? *
1/1
a) Long term and disability policy
b) Hospital daily cash benefit plan
c) Family floater policy
d) Top-up policy
 
 
15) To what extent is the liability of a health insurance company to pay claims
under an indemnity plan, also known as Mediclaim? *
1/1
a) The sum insured on contracting the disease, irrespective of amount spent
b) Actual expenses incurred in treatment
c) A maximum of 10 times the premiums paid.
d) Actual expenses incurred, up to the amount insured for specified illnesses.
 
 
16) Nidhi is fond of investing in high-value fine arts and other collectibles. She is
eager to insure her high-value collection. Which of the following is the most
important factor to be addressed by Nidhi for purchasing the personal property
coverage? *
1/1
a) Current value of each item established by professional appraiser.
 
b) Year of purchase of each of the item validated by bill copy.
c) Purchase price of each of the item validated by bill copy.
d) Insurance cover of the storage place.

 
17. Please match the disability policy renewal provision, The policy may not be
canceled by the insurance company during the policy term, but the company may
refuse to renew the policy for specific reasons listed in the contract. *
1/1
a) Guaranteed renewable
b) Cancelable
c) Conditionally renewable
 
d) Noncancellable
Feedback
A conditionally renewable policy may not be canceled by the insurance company during the
policy term, but the company may refuse to renew the policy for specific reasons listed in the
contract.

 
18. Please match the disability policy renewal provision, The premium schedule will
never change unless the insured buys additional coverage in the future. *
0/1
a) Guaranteed renewable
b) Cancelable
c) Conditionally renewable
 
d) Noncancellable

Correct answer
d) Noncancellable

 
19. Please match the disability policy renewal provision, The insured has the right
to renew the policy for a stated number of years. Premiums cannot change unless
the change is made for an entire class of policyholders. *
1/1
a) Guaranteed renewable
 
b) Cancelable
c) Conditionally renewable
d) Noncancellable
Feedback
A guaranteed renewable policy gives the insured the right to renew the policy for a stated
number of years. The insurer cannot change the premium unless the change is made for an
entire class of policyholders.
 
20. Which of the following will result if an insured of a life insurance policy dies
during the grace period and the premium has not yet been paid? *
1/1
a) The prorated premium will be subtracted from the death benefit and the remainder will be
paid to the beneficiary.
 
b) It will be assumed the premium was paid and there will be no reduction in death benefit.
c) The policy will lapse and no death benefit will be paid.
d) None of the above are correct.
Feedback
If an insured of a life insurance policy dies during the grace period and the premium has not yet
been paid, the prorated premium will be subtracted from the death benefit and the remainder will
be paid to the beneficiary.

 
21. A life insurance policy that pays a dividend is known as a __________. *
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a) non-participating policy
b) noncancellable policy
c) waiver of premium policy
d) participating policy
 
 
22. A waiver of premium clause: *
1/1
a) waives the premium if additional insurance is purchased.
b) waives the premium in the event of disability.
 
c) waives the premium after a specific number of years.
d) waives the premium due to extreme financial hardship.
Feedback
A waiver of premium clause waives the premium in the event of disability.

 
23. A variable life insurance policy will pay benefits that vary according to which of
the following? *
1/1
a) The flexibility of premiums paid
b) The variability of the mortality factor
c) The value of underlying investments
 
d) All of the above are correct.
Feedback
A variable life insurance policy will pay benefits that vary according to the value of the underlying
investments.

 
Q. 24 Shubham has a home owner’s Insurance policy for Rs. 30 L with 80% Co
Insurance Clause for his sea facing house which is currently valued at Rs. 40 Lakh.
The policy carries a deductible clause of Rs. 10000. In an unforeseen incident,
there is a fire in his garage which causes damage worth Rs. 50000 in this house.
What compensation would be received by Rama from the insurance company in
this incidence? *
1/1
a. 46875
b. 36875
 
c. 39000
d. 31000

 
25. Sunil has taken a money back policy with a basic sum assured of Rs. 5,00,000
and a maturity period of 25 years. Survival benefits of 15% each are paid under the
policy at the end of the 5th, 10th, 15th and the 20th year. In addition, accrued
bonus of Rs. 750 per thousand sum assured and an interim bonus of Rs. 25 per
thousand sum assured, are also payable under the policy. What will be the death
claim amount if Sunil dies in the 25th year of the policy? *
1/1
a) Rs. 5,87,500
b) Rs. 8,75,000
c) Rs. 8,87,500
 
d) Rs. 6,55,000

 
26. Andrew is loner in his mid – fifties and works from home for a software firm. His
lifestyle has been pretty laid with not much of physical activity. While he feels
healthy, of late he finds difficulty in conducting his daily tasks which has increased
his anxiety., He wants to buy a long term insurance, not medical in nature. But a
plan which would provide him necessary assistance in his daily living at home
without a need for a doctor or a nurse. Which of the following plan suitable for
Andrew’s requirement?a. Skilled Nursing care *
1/1
a. Skilled Nursing care
b. Intermediate Care
c. Custodial care
 
d. HMO’s

 
27. Managed Health care plans address the rising costs of medical care and
encompass a variety of healthcare programs. Which of the following is a feature of
Healthcare managed organizations (HMO’s)? *
1/1
a. The doctor under HMO Plan loses money on the patient if the patient visits him very
frequently.
b. HMO’s encourage subscribers to have regular medical check-ups along with other
preventive care.
 
c. HMO’s are business entities formed by Physicians and hospitals that contact with an
Insurer to take are of health services.
d. The patient can get the required care from non – network Physician also taking approval for
concerned HMO.

 
Q. 28 In Which type of Life insurance; Policyholder has option to invest in equity
class as per the discretion. *
1/1
a. Universal Life
b. Whole Life
c. Variable Life
 
d. Annuity plan

 
Q. 29 In which type of dividend/Bonus payment option guaranteed payouts made
during the term of policy. *
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a. Reversionary Bonus
 
b. Loyalty Additions
c. Return of Premium
d. Guaranteed Returns

Correct answer
d. Guaranteed Returns

 
30. Mr. Som rai has taken a Policy for Rs. 5 Lakh Gold Kept at the home as per the
current rate applicable in market. After 6 months, there is a burglary happened in
the house & take away all gold. The Price of gold increased to Rs. 5.5 Lakh. He
lodged the claim and spent Rs. 2K to file the claim with Insurance Company. How
much Claim amount is admissible by Insurance Company in this case? *
1/1
a. Rs. 4,98,000
b. Rs. 5,00,000
 
c. Rs. 5,50,000
D. Rs. 5,52,000

 
Q. 31. Mr. Shalab purchased 50 Computers for Rs. 25 Lakh 3 years back. Now due
to technology change new computers for the same configuration is available at Rs.
20 Lakh. He wants to take insurance policy on the basis of market value of
Insurance by Charging 10% Deprecation on WDV method. Calculation how much
sum Insured Insurance company on these computers will be given by Insurance
company in this Case. *
1/1
a. 18,22,500
b. 14,58,000
 
c. 20,00,000
d. 14,00,000

 
Q. 32 As per given options, which of the following options has less premium per
unit? *
1/1
a. Sports Car
b. Commercial Vehicle
c. Two cars insured for the same Insurance company and Insurance Company give a multiple
car discount.
 
c. 23 years Old, First time driver
This form was created inside of IIFC.

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