1 Calculate the half yearly premium on SA 150000/- on the basis of following data: Plan term endowment 25 years, tabular

ar premium Rs. 53.40 per thousand Accepted with DAB Extra Re. 1 per thousand S. A. S. A. Rs. 150000 rebate Rs. 2 Occupation Extra Rs. 3 per thousand S. A. Yearly mode rebate less 3% Half yearly premium rebate less 1.5% Quarterly premium rebate Nil Monthly premium rebate plus 5% a. b. c. d. 8070 4095 7740 8610

2 Calculate paid up value: Sum Assured Rs. 100000 Plan without profit endowment Term 20 years Date of commencement 20.02.1995 Last premium paid 20.02.2000 Quarterly mode Date of birth 20.02.1950 Tabular premium 50.05 a. b. c. d. 25000 50000 26250 30250

3 The sales literature of an insurer, pertaining to a particular participating policy, claims that in past, the company had paid maturity benefits of two and a half times the basic sum assured on their 15 year endowment policies. The company uses the uniform compound reversionary bonus system and the terminal bonus system to distribute profits to its participating policy holders. Assuming a uniform reversionary bonus rate of 35 per thousand sum assured was declared over the last 15 years, a basic sum assured of 50000 and level annual premiums of 5066, calculate the terminal bonus content in the maturity proceeds. Ignore mortality. a. b. c. d. 50000 48750 83767 75000

4 Using the information given above, calculate the internal rate of return implicit in the maturity proceeds. Ignore mortality. a. 5% b. 10% c. 7%

d. 8% 5 ____________ insurance policy cannot be assigned. a. b. c. d. Term Endowment Money back ULIP

6 An assigned life insurance policy can revert to the original policy holder once the liability is paid off. a. b. c. d. True False It can revert only at the discretion of the assignee True, but the original policy holder will not receive any interim bonuses which have been declared on the policy.

7 A client explains that she only wants an insurance policy that will cover her family against financial risk over the next 5 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. b. c. d. An unit linked insurance plan Money back policy Term insurance with a level premium Term insurance with a stepped up premium

8 Participating policies are those where _________. a. b. c. d. Both insurer and insured participates in each others loss Insured participates in running of insurance company Insured participates in surplus of insurance company Insurer participates in loss of insured.

9 During retirement a person would maintain a high level of life insurance protection only to: 1) Pay estate duty 2) Provide income succession or dependent income 3) Repay outstanding debt 4) Build cash value Choose from the following answers:a. (1) and (2) b. (1) and (3) c. (1), (2) and (3) d. None of the above