Mock Test - Rmip

85 Questions | By Apexwealth | Last updated: Mar 22, 2022 | Total Attempts: 109

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Questions and Answers

1.

1. What are the criteria for determining Insurable risk? a) Law of Large Numbers b) The loss must be definite and measurable c) The loss must not be catastrophic
- A.
  
  A) C only
- B.
  
  B) B & C
- C.
  
  C) A B & C
- D.
  
  D) None of above
2.

A type of risk with high frequency but low severity is probably best handled by:
- A.
  
  A) A voidance
- B.
  
  B) Subrogation
- C.
  
  C) Self insurance
- D.
  
  D) Under Insurance
3.

Speculative risk can have following outcomes ________ a) Loss b) Gain c) Status Quo
- A.
  
  A) A Only
- B.
  
  B) B Only
- C.
  
  C) C Only
- D.
  
  D) A B & C
4.

LALGI is _____________.
- A.
  
  A) Private contribution guarantee scheme
- B.
  
  B) Private insurance
- C.
  
  C) Public benefit guarantee scheme
- D.
  
  D) Social insurance
5.

For risk to be insurable which one of the following is not correct?
- A.
  
  A) Loss must be fortuitous or accidental.
- B.
  
  B) The loss must not be catastrophic.
- C.
  
  C)The loss produced by the risk must be definite and measurable.
- D.
  
  D) There mus be a sufficietly large number of heterogeneous exposure units to make the losses reasonably predictable.
6.

Consideration under the law is the return promise to: a) Do certain things b) Abstain from doing certain things c) Forebear some acts d) A minor
- A.
  
  A) AB&C
- B.
  
  B) AB&D
- C.
  
  C) AC&D
- D.
  
  D) BC&D
7.

A client explains that she only wants an insurable policy that will cover her family against financial risk over the next five years, while she still has dependent children and a large mortgage. It is unlikely her income will increase over this period. What type of insurance is she looking for?
- A.
  
  A) An unit linked insurance plan
- B.
  
  B) Money back policy
- C.
  
  C) Term insurance with a level premium
- D.
  
  D) Term insurance with a stepped premium
8.

Which of the following is typr of pecuniary insurance?
- A.
  
  A) Commercial vehicle insurance
- B.
  
  B) Engineering insurance
- C.
  
  C) Money policy
- D.
  
  D) Workmen's compensation
9.

Participating policies are those where_____?
- A.
  
  A) Both insurer and insured participates in each others loss
- B.
  
  B) Insured participates in running of insurance of company
- C.
  
  C) Insured participates in surplus of insurance company
- D.
  
  D) insurer participates in loss of insured
10.

In unit linked policy, market risk is with _______ a) Insured b) Insurer
- A.
  
  A) A
- B.
  
  B) B
- C.
  
  C) Both A & B
- D.
  
  D) Neither A nor B
11.

If the life insurance poolicy is endorced under MWP Act, 1874 then____________
- A.
  
  A) Creditors have claim only to extend of outstanding pricipal, on policy proceeds
- B.
  
  B) Creditors have first claim on policy proceeds
- C.
  
  C) Creditors have no claim on policy proceeds
- D.
  
  D) Creditors have residual claim on policy proceeds
12.

Minimum age at entry for medi-claim is _______?
- A.
  
  A) 8 years
- B.
  
  B) 91 days
- C.
  
  C) 365 days
- D.
  
  D) 18 years
13.

Anand was driving his car home from work, when a pit dug by the municipal corporation in the road, remained open and unmarked. He met with an accident and had to be hospitalised for 3 months. What are the insurance claims that can a rise from this accident?
- A.
  
  A) Anand can claim personal insurance for the accident as it was not caused be negligence on his part; the Municipal corporation can't claim third party lss insurance to pay damages to Anand, as it was negligent. Anand can claim insurance for damage due.
- B.
  
  B) Anand can claim temporary disability insurance and insurance for his damaged car
- C.
  
  C) Anand has to apply to the municipal corporation for damages, which the corporation will pay out of its claims for liability to third party. His motor insurance will cover damages to his car.
- D.
  
  D) Since the municipal corporation was negligent, it would not be able to lodge a claim to recover payment of damages to Anand. Anand will only receive motor insurance claims on his car.
14.

Sujata was standing on the terrace for her building hanging out clothes. She accidently fell off and landed on the sunshield of the next floor, which crashed and damaged the car of her neighbour parked below. What are the insurance claims that arise from this event?
- A.
  
  A) Sujata can claim personal accident insurance. Both her neighbours will claim property insurance for he freak accident.
- B.
  
  B) Sujata can't claim accident insurance as the accident was cauised by the negligence. her neighbours can claim property insurance cover for loss to their property.
- C.
  
  C) Sujata's neighbours will collect damages from her, which Sujata can pay out of insurance cover losses to third party.
- D.
  
  D) Sujata's neighbours will not be able to claim insurance as the damage to their property due to such freak accidents is not usually covered by insurance. Sujata will be able to claim her accident insurance, as she did not fall intentionally.
15.

Your client has bought life insurance and medical insurance, but has not bought a cover for permanent disability. His argument is that he is paying too much by way of premium for risks that he believes are farfetched and not likely to afftect him. What would you advise the client?
- A.
  
  A) A financial planner can persuade the client to consider the losses from permanent disability and highlight the risks to the client and recommend an appropriate policy for him.
- B.
  
  B) If a client is not willing to bear the costs of premium, it can be assumed that he is willing to bear the costs of risk retention.
- C.
  
  C) If losses that would occur to the client in the event of permanent disability are higher than what he can bear, the client is better off buying insurance. The costs of insuring against losses, which have lower probability of happening, will in any case be lower.
- D.
  
  D) The amount of insurance a person will buy depends on his perception of risks and their impact on him. It would not be possible to persuade this client to buy more insurance.
16.

Suresh has not bought accident insurance cover. though his two-wheeler is covered for damages from accidents. He wears a helmet and drives carefully. What can you say about his risk management?
- A.
  
  A) Suresh has insured the property risk. He controls some of his personal riak and retains the rest of the risk.
- B.
  
  B) Suresh has controlled his personal riak and insured his property risk.
- C.
  
  C) Suresh ahs not done anything to amange his risks and has to immediately go for accident and personal risk cover. He can't rely on third party damages alone to cover the risk of the road.
- D.
  
  D) Suresh has tranfered his personal riak to other frivers of the road, insured his property risk and can claim damages from accidents are caused by third party negligence.
17.

Mrs. Rangnekar a 40 year old widow has a 8 year old son. Her current savings are not adequate to provide for her son's post graduate studies however she will be able to save it up by the time he finishes graduation i.e. when he is 20 years old. Mortality tables indicate that her life expectancy is another 30 years. which of the following is true?
- A.
  
  A) She needs to insure her life for 12 years
- B.
  
  B) She does not need to insure her life
- C.
  
  C) She needs to insure her life for 30 years
- D.
  
  D) She needs to insure her son's life for 30 years.
18.

Vinayak 36 years and married works for multinational firm, which provides adequate medical and related covers. He is also able to accumulate sick leave. He already has his own home and savings of Rs 35 lakh, which are well invested. Which insurance cover does he require the most?
- A.
  
  A) Life Cover
- B.
  
  B) Medical Cover
- C.
  
  C) Property Insurance
- D.
  
  D) Temporary Total Disablement Cover
19.

Premium on motor insurance policy doesn't dpend 0on which one of the following factors?
- A.
  
  A) Zone of operation of the vehicle
- B.
  
  B) Insured Declared Value (IDV) of the vehicle
- C.
  
  C) Cubic capacity of the vehicle
- D.
  
  D) Age of the owner of the vehicle
20.

All the following statements describe the operation of life annuity except
- A.
  
  A) Because of interest factor, an annuitant is assured of receiving back more than he or she paid in
- B.
  
  B) The annuitant is assured tha he or she cannot outlive the length of time of annuity payments
- C.
  
  C) The emphasis is on the liquidation of the fund as opposed to its growth
- D.
  
  D) The older the annuitant is when he or she receives the first annuity payment. The greater will be the amount for each payment.
21.

In a sample of 200 observations, the lowest and the highest scores were 45 and 265 respectively, what would be range of the distribution?
- A.
  
  A) 110
- B.
  
  B) 155
- C.
  
  C) 155.26
- D.
  
  D) 220
22.

Derive the policy cost per thousand with the following data; policy cost per thousand conversion is 0.001. Interest rate selected equivalent to the after tax rate of return is 10% Dividend or Bonus is Rs. 13000 Death Benefit is Rs. 20,00,000 Annual premium is Rs 23000. Cash surrender value at the end of current policy year is Rs 600000. Cash surrender value at the end of the previous policy year is Rs 570000
- A.
  
  A) Rs 25.04
- B.
  
  B) 28.07
- C.
  
  C) 30.10
- D.
  
  D) 31.15
23.

In the event of loss due to insured event the principle of indemnity ebsures that
- A.
  
  Compensation paid to insured in always less than the loss
- B.
  
  Compensation is equal to the loss
- C.
  
  Never less than loss
- D.
  
  Not attempting
24.

Client has need to provide for the child's education cost which envisages that 4 annual payments of Rs. 20000 in current money terms would be needed beginning 15 years from now. Assuming level of inflation rated at 5% p.a. & that the fund earns 8% p.a. throught, calculate PV to be placed on the liability when carrying out a needs analysis.
- A.
  
  Rs. 24000
- B.
  
  Rs. 50000
- C.
  
  Rs. 49000
- D.
  
  Rs. 23000
25.

In the sample of 200 observations, lowest & highest scores were 45 and 265. What is the range of distribution?
- A.
  
  155
- B.
  
  220
- C.
  
  155.56
- D.
  
  110