2

23. In Variable insurance policies, the policy reserve (B) Ins. Company, Unit-holder
form part of a …. (C) Insurance company in both the cases
(A) Special investment account (D) Policyholder in both the cases
(B) General investment account 35. With regard to Unit Linked policy, who bears
(C) Both (D) None the expense and mortality risk?
24. In Variable insurance plan, the policy reserves are (A) Ins. Co. (B) Policyholder
placed in ….. fund which do not form part of its (C) Agent (D) IRDA
general investment account. 36. In Unit Linked policies, the risk cover is a multiple of
(A) Same (B) Separate …
(C) Secured (D) Growth (A) Fund Value (B) Accumulations
25. In which type of policy, death benefits and cash (C) Net Asset Value (D) Premiums
value varied with investment experience? 37. In Unit Linked plan, the Fund Value is a product
(A) Traditional cash value plan (B) ULIP of which of the following:
(C) Universal Life Ins (D) Variable life ins (A) Gross Asset Value & Net Asset Value
26. In respect of Traditional plans, which of the (B) Net Asset Value & Premium
following statement is correct? (C) Net Asset Value & Charges
(A) Policyholder’s bonus depend on (D) Net Asset Value & No. of Units
periodic valuation of Assets & Liabilities 38. Why Pensions are said to represent the flip side
(B) Bonus did not directly reflect the value of life insurance?
of assets of the insurer (A) Life insurance provides protection
(C) Both correct (D) Both are wrong against premature death whereas pension
27. In Unit Linked policies, the benefits are determined by covers the contingency of living too long;
the …. of units credited to the policyholder’s account (B) In life insurance premium payments result in
on the date on which payment is due. creation of sum assured. In case of pensions,
(A) Growth (B) Value the corpus gets liquidated by regular income
(C) Reduction (D) Loss payments.
28. Units in a Unit Linked policy are purchased through (C) Both the above are correct
payment of a – (D) Both are wrong
(A) Single premium (B) Regular premium 39. Public Pensions are provided by the –
(C) Either A or B (D) None (A) Insurance companies (B) Employers
29. Name the deductions made from policyholder of (C) Individuals (D) State
a Unit Linked policy. 40. Public Pensions are funded in the following manner:
(A) Commission (B) Net Asset Value (A) Earn as you Go (B) Take as you go
(C) Fund (D) Charges (C) Spend as you go (D) Pay as you go
30. The value of the units of a Unit Linked policy 41. Which of the following is incorrect?
is termed as : (A) Many developed countries provide pension
(A) Gross Asset Value (B) Net Asset Value to alleviate poverty.
(C) Bonus (D) Guaranteed addition (B) These pensions are sufficient to maintain a
31. Which special feature of Unit Linked policy allowed modest life style.
change from one fund to another? (C) A & B are correct (D) A & B are wrong.
(A) Transfer (B) Switching 42. Who provides Occupational pensions?
(C) Assignment (D) Loan (A) Insurance companies (B) Employers
32. From the following, choose the fund which provides (C) Individuals (D) State
for predominant investment in Equities. 43. Which is a type of Occupational pension?
(A) Equity Fund (B) Debt Fund (A) Defined Benefit type
(C) Balanced fund (D) Money market fund (B) Defined contribution type
33. What could be the basis for choice of fund in a (C) Both correct (D) Both wrong
Unit Linked policy? 44. Under Defined Benefit type, the benefit payable is
(A) Investment need (B) Risk profile independent of –
(C) Both A and B (D) NOTA (A) Contributions (B) Investment earnings
34. In Traditional life insurance policies, the investment (C) Both correct (D) None correct
risk is borne by the ……… while in Unit Linked 45. Quantum of pension under Defined Benefit type would
plans, the investment risk is borne by the …….. depend on –
(A) Policyholder, Unitholder (A) Accrual rate (B) Salary