Module 2 Sample Questions Q1. A risk averse individual is likely to have _________________. A. More insurance. B. More self insurance. C. Greater deductibles. D. Under insurance. Q2. Conditions that increase either the frequency or severity of loss are called: A. Etenuatin! circu"stances. B. #isks. C. Hazards. D. $erils. Q3. %hich of the follo&in! state"ents is not true re!ardin! "ortality and "orbidity' A. A!e for a!e( assured lives "ortality rates are lo&er than )o)ulation "ortality rates. B. For a given population age !or age t"e incidence o! !emale mor#idit$ is lo%er t"an male mor#idit$. C. A!e for a!e( fe"ales e)erience lo&er "ortality than "ales. D. *n costin! life annuities( it is i")ortant to )rovide for e)ected future i")rove"ents in annuitants+ "ortality. Q&. ,he )re"iu" rates for &hich class of insurance is "ost sensitive to the interest rate assu")tion' A. %hole-of-life )olicies. B. 'ndo%ment policies. C. ,e")orary Assurance )olicies. D. Disability *nco"e )olicies. Q(. ,he su" that a life insurance )olicyholder "ust contribute as his share of the death clai"s in any )articular )olicy year is called the ____________. A. Benefit of survivorshi). B. Mean actuarial reserve. C. .et level )re"iu". ). Cost o! insurance. Financial Planning Association of Malaysia Web Sample 2008 Q*. A contract for invest"ent linked life insurance "ay be characteri/ed as a0an __________________. *. Unilateral contract. **. Aleatory contract. ***. Conditional contract. *1. $ersonal contract of adhesion. A. *( **( *** B. *( *** C. **( *1 ). All o! t"e a#ove. Q+. ,he follo&in! are ea")les of )ay"ents incurred by a deceased )erson+s estate: *. 2ettle"ent of the deceased+s debts. **. $robate and ad"inistration costs. ***. *nsurance clai"s costs. A. , ,, B. *( *** C. **( *** D. All of the above. Q-. $ersonal accident insurance does not cover __________________. A. ,e")orary or )er"anent disable"ent. B. Sel! a!!licted in.uries. C. Corrective sur!ery. D. 3uneral e)enses. Q/. 4*t is )ossible to )redict the a))roi"ate nu"ber of deaths or frequency of disabilities &ithin a certain !rou) over a s)ecific ti"e.5 %hich of the follo&in! insurance conce)ts describes the above state"ent' A. ,he 6uantu" *nsurance $rinci)le. B. ,he $rinci)le of lar!e loss. C. 0"e 1a% o! large num#ers. D. ,he 7a& of di"inishin! return. Financial Planning Association of Malaysia Web Sample 2008 Q12. Eclusions are inserted into )olicies for the follo&in! reasons ece)t: A. Cover can be )rovided under "ore a))ro)riate )olicies. B. ,he risks are uninsurable. C. 0"e cover is not demanded #$ t"e insured. D. *nsurers require hi!her )re"iu"s to )rovide such cover. Q11. $eter( a!ed 88( is the no"inee of his "other+s #M9::(::: life insurance )olicy. ,he insurer has requested hi" to select a settle"ent o)tion for )ay"ent of the )roceeds. %hat factors should he consider before "akin! the selection' *. ;is current inco"e needs. **. ;is asset "ana!e"ent ability. ***. ;is net &orth. *1. ,he ta liability on the #M9::(:::. A. *( **( *1 B. , ,, ,,, C. * D. *1 Q12. ,he "ain )ur)ose for &hich insurance co")anies are required by statute to undertake annual valuation of their liabilities is to: A. Enable the" to deter"ine the )rofits arisin! fro" insurance o)erations. B. Enable the *nland #evenue to char!e the a))ro)riate ta on the insurance co")anies+ )rofits. C. Enable investors to for" an o)inion on their "ana!e"ent. ). 'sta#lis" t"eir solvenc$ position. Q13. ,he )rofits of an insurer &ill decrease &hen _____________. A. #evenue increase. B. $olicyo&ner dividends decrease. C. 0a3es increase. D. E)enses decrease. Financial Planning Association of Malaysia Web Sample 2008 Q1&. _____________ is the a"ount that is added to the risk )re"iu" to cover the )ossible variability of clai"s cost. A. $ure )re"iu". B. E)enses loadin!. C. $rofit loadin!. ). Contingenc$ loading. Q1(. %hich of the follo&in! Acts has i")act on the insurance industry in Malaysia' *. *nsurance Act( <==>. **. #oad ,rans)ort Act <=?@. ***. Co")anies Act( <=>8. A. *( ** B. , ,,, C. **( *** D. All of the above. Q1*. An the occurrence of a loss( a valued contract is one &here the )olicyholder is ______________. A. *nde"nified. B. 4aid an amount agreed at t"e outset. C. $aid the re)lace"ent value. D. $aid the re)lace"ent value less the a))licable deductible. Q1+. %hich of the follo&in! is not an essential ele"ent of a valid contract' A. ,he intention to create le!al relations. B. An o!!er made in %riting. C. Acce)tance of an offer. D. Consideration. Financial Planning Association of Malaysia Web Sample 2008 Q1-. %hich of the follo&in! state"ents is not true )ertainin! to the econo"ic value of an individual' A. ,t re!ers to t"e contri#ution o! an individual to societ$. B. 3or insurin! an individual( the )roBected flo& of inco"e to his fa"ily should be discounted i!norin! "ortality. C. A ty)ical individual+s econo"ic value di"inishes as )otential inco"e is converted into actual inco"e. D. 3or insurin! an individual( the )roBected flo& of inco"e to his fa"ily should be discounted allo&in! for invest"ent inco"e. Q1/. A )olicyholder la)sed her #M<8:(::: non)artici)atin! &hole life insurance )olicy. ,he annual )re"iu" on this )olicy &as #M8::. %hen the )olicy la)sed( its reduced )aid-u) insurance non-forfeiture )rovision took effect. At the ti"e the )olicy la)sed( there &ere no outstandin! )olicy loans( and the a"ount of the )olicy+s net cash value &as #M8(:::. *n this situation( the effect of the non-forfeiture o)tion &as that: A. A net sin!le )re"iu" of #M8(::: &as used to )urchase &hole life insurance in an a"ount less than #M<8:(:::. B. A net sin!le )re"iu" of #M8(::: &as used to )urchase &hole life insurance in an a"ount equal to #M<8:(:::. C. 0"e insurer automaticall$ paid t"e overdue premium #$ ma5ing a 6M(22 loan against t"e polic$7s cas" value. D. #M8(::: &as )aid in a lu") su" to the )olicyholder. Q22. %hich of the follo&in! is usually the )ri"ary source of internally !enerated ca)ital Csur)lusD for a life insurance co")any' A. Favoura#le deviations o! actual e3perience !rom assumed e3perience on esta#lis"ed policies. B. 3unds raised by sellin! bonds in traditional ca)ital "arkets. C. ,he effective use of reinsurance to transfer risk to others. D. 1oluntary )olicy ter"inations at early durations &hen )olicy surrender values are less than their reserves. 'nd o! Sample Questions
2019-09-03 - Un Swissindo Declaration Transaction To Defend World Financial Economy and World Security in The Republic of Indonesia Via Uns-Dra Gold Backed Cryptocurrency