RAIP Mid Term Aug 6, 2010

8/8/2019 RAIP Mid Term Aug 6, 2010

1/41 The Indian Institute of Financial Plannin

POST GRADUATE DIPLOMA IN ADVANCED FINANCIAL PLANNING AND WEALTH

MANAGEMENT BATCH - I (10-11)

MID-TERM EXAMINATION

RISK ANALYSIS & INSURANCE PLANNING

TOTAL MARKS: 15 TIME: 1 HR

1. NAME OF THE CANDIDATE: ( IN CAPITALLETTERS)

2. DATE 3. SIGNATURE OF THE CANDIDATE

4. RULESANDREGULATIONS

A) THIS BOOKLET CONTAINSSECTION A, SECTION B,SECTION C. ALL QUESTIONSARECOMPULSORY.

B) SECTIONA 1 MARKS,SECTION B 2 MARKS & SECTION C 4 MARKSEACH.C) ANSWERSECTIONSA,SECTION B & SECTION C IN THE QUESTION BOOKLET.D) PERSONALITEMS,SUCH ASLAPTOPS, BOOKSANDNOTES,ARENOT ALLOWEDIN THE

EXAMINATIONROOM. KEEP YOURMOBILESWITCHED OFF INSIDE THEEXAMINATIONROOM.

E) DURING EXAMINATIONS, CANDIDATES MUST OBEY ANY INSTRUCTIONS GIVEN BY THEINVIGILATORS;

F) CANDIDATES WILL NOT BE ALLOWED TO ENTER AN EXAMINATION ROOM AFTER THEEXAMINATION HAS BEENINPROGRESS FOR30 MINUTES.

G) ALLWORK,INCLUDINGROUGH WORK,MUST BEWRITTENIN THE QUESTION BOOKLET.H) A CANDIDATEMUST NOT COMMUNICATE INANYWAYWITH ANOTHER CANDIDATEDURING

THEEXAMINATIONANDMUSTNOT DISTURB OTHERCANDIDATES.

I) CANDIDATES MUST NOT LEAVE THEIR EXAMINATION DESKS DURING AN EXAMINATIONEXCEPT WITH THEPERMISSION OF ANINVIGILATOR

J) CANDIDATESMUST STOPWORKWHENINSTRUCTED TO DO SO BY THEINVIGILATOR.K) NO CANDIDATEMAY USE UNFAIRMEANSINANEXAMINATION ORHELP ORATTEMPT TO HELP

ANY OTHERCANDIDATE TO USE UNFAIRMEANSINANEXAMINATION.

L) BREAKINGANY OF THEEXAMINATIONRULESMAY CONSTITUTE UNFAIRMEANS.5. TOTALMARKS OBTAINED

INVIGILATORSSIGNATURE___________________; EXAMINERSSIGNATURE__________________;

2 0 1 0


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Q1. Which of the following is not the principle of insurance ?

A. Principle ofSubrogation. B. Principle of Indemnity. C. Principle of Utmost Good Faith. D. Principle of Gravity.

Q2. The type of insurance depends on

A. The perilB. The riskC. Neither the peril nor the riskD. Both the peril and the risk

Q3. A human being

A. Is an economic assetB. Is an income earning assetC. Is a perishable assetD. All the above

Q4. A contract with a minor:

A. Is voidable at the option of either partyB. May be admissible in special cases.C. Is absolutely voidD. None of the above

Q5. The principle of utmost good faith does not apply to

A. Facts of common knowledgeB. Facts of lawC. Facts which are not material for underwritingD. All the three kinds of facts mentioned above

Q6. Reinsurance is the name given to

A. An individual taking insurance for the second time. B. An insurer placing insurance with another insurer. C. Both the above situations.D. Neither of the above situations.

Q7. An insurer, as a trustee, is responsible to the

A. The policyholdersB. The IRDAC. The GovernmentD. All the above


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Q8.Mr. Ravi has taken a shop on rent in Karol Bagh with the proviso that he himself had to pay the

insurance premium for fire and other perils on the shop and not the owner of the shop. Which of the

step of risk management process is followed in this case?

A. Risk Control.B. Risk Transfer.C. Risk Retention. D. Risk Reduction.

Q9.Select the right statement

A. The existence of insurable interest is decided by

A. The interest which the proposer has in the asset being insuredB. The relationship between the proposer and the object of insuranceC. The legal decisions on these mattersD. All of the above

B. If there does not exist any Insurable interest in the policy, the contract is said to be:

A. Voidable at the option of insurer. B. Void at the option of insured. C. Voidable at the option of Insured. D. Void ab initio.

C.With reference to life insurance:

A. The claim payable is subject to the principle of indemnityB. The claim payable will depend on the Sum AssuredC. The claim payable will depend on the income of the deceased personD. The claim payable will depend on the size of the family left behind

D. In life insurance

A. The principle ofutmost good faith continues to operate till the policy becomes a claimB. Facts which happen after the policy has commenced, need not be reportedC. Illnesses after the policy has commenced must be informed to the insurer. D. All the above three statements are correct

Q10. Which of the following risks are insurable?

A. SpeculativeB. EconomicC. Sure to happenD. All of the above

Q11. Mr. Vineet Jain has Fire and Misc. Insurance. When the insurable interest should exist, in order to

make an admissible claim?

A. At the time of Loss.B. At the inception time.


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C. Both A & B.D. None of the above.

Q12.Mr. Rahul misrepresented the facts to insurance company with reference to the fact of already

having an indemnity policy. The contract is:

A. Voidable at the option of insured. B. Voidable at the option of insurer. C. Void ab initio. D. None of the above.

Q13 (A).Which one of the following statements is correct?

A. People hesitate to buy life insurance because they are not aware of their needsB. People hesitate to buy life insurance because they prefer to enjoy the presentC. Both the statements are correctD. Both the statements are wrong

Q13 (B). Which one of the following statements is correct?

A. A physical hazard affects the probability of deathB. Body measurements may indicate physical hazardsC. Both the statements above are correctD. Both the statements above are wrong

Q14. Insurance compensates losses

A. By replacing the original assetB. To the full extent of lost income,C. Only to the extent of insured amountD. All the three ways.

Q15. Rahul agrees to pay Manish Rs 1,00,000/ - if Manish house is burnt, in exchange of Manish paying

Rs 5,000/- as premium. Which type of transaction is this?

A. Wagering Contract.B. Betting.C. Gambling.D. Contract of Insurance.

Documents

RAIP Mid Term Aug 6, 2010