Quiz #01 - Results

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TRUE OR FALSE 1. PFRS 4 SUPERSEDES PFRS 17 2.INSURANCE RISK WILL BE DEEMED SIGNIFICANTLY ONLY IF AN INSURED EVENT COULD CAUSE AN INSURER TO PAY SIGNIFICANT ADDITIONAL BENEFITS IN ANY SCENARIO 3.PFRS 17 APPLIES TO REINSURANCE CONTRACTS 4.AN ISURANCE CONTRACT CANNO CONTAIN MORE THAN 1 NON- INSURANCE COMPONENT

3326 J requests insurance on a neighbor's home in his own name. The insurance producer explains that such a policy also would violate the principle of: a. subrogation b. assignment c. warranty d. insurable interest 3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy

A "waiver-of-premium” clause: Select one: a. allows the person to purchase additional insurance at no extra cost means the insured will receive the cash value immediately allows an insurance agent to pay your premiums b. C. O d. waives the suicide clause e. pays premiums in the event of illness or disability Clear my choice

The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract.  Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturity

What's the answer is correct?!

C. a legally recognized relationship between the insured and the financial loss O D. risk that have high frequency and high severity 2. When two or more policies cover the same loss, the right of the one insurer to call upon the other to share the loss is called the principle of O A. indemnity B. subrogation O C. contribution O D. utmost good faith 3, Which of the following principles of insurance denotes a positive duty of the person seeking insurance to voluntarily disclose all material facts to the risk

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What is the consideration for the insurer in an insurance contract? 1.Premiums Paid 2.Risk Avoidance 3.The literal piece of paper the contract is written on is the consideration 4.An Insurance Contract does not require consideration

3330 Which of the following actions represents consideration in an insurance contract? a. paying the premium b. filing a claim c. missing the policy d. endorsing a policy

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S1: One characteristic of an insurance contract is to transfer insignificant risk from the policyholder to the issuer. S2: Under the general model of PFRS 17, a group of insurance contract is initially measured at the fulfillment cash flows and the contractual service margin.A. Both statements are correctB. Only S1 is correctC. Both statements are incorrectD. Only S1 is incorrect

Question 3 Which of the following is NOT true of insurable risks? O Risks can be insured even if they are not measurable or determinable. O A large number of similar exposures must exist. O The loss must not pose a catastrophic risk for the insurer. O Insured loses must be accidental. Question A 0.5 pts 0.5 ts

O C. Waqf O D. Ta'awun 29. 'Premium' in takaful is considered as O A. The price for transferring risks and payment for protection O B. Segregation of risks from the insured to the insurer O C. Absolute protection from illness, accidents and so forth O D. Voluntary contribution to participate in protecting each other against defined loss 30. Which of the following is TRUE under the pillars of a Takaful contract? *

S1: PFRS 17 allows and insurer to change its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. $2: Outward Reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. $3: Premium deficiency arises when the unearned premium reserve is less than the estimated claims related expenses. O Only S1 is incorrect O Only S2 is incorrect O Only S1 is correct O Only S3 is correct All statements are correct O Only S3 is incorrect Only S2 is correct All statements are incorrect

S1: It is more advantageous and beneficial to the insured if there are more riders included in theinsurance contract. S2: Life insurance policies, unlike other properties, do not requiresupervision or frequent examination to minimize risk and maximize results.  A. S1 and S2 are trueB. S1 and S2 are falseC. Only S1 is trueD. Only S2 is true

If an insured fails to pay the premium when due, the insured's heallh policy will remain in force for a specified period of lime under which of lhe following provisions?   A.Grace Period   B.Waiver of Premium   C.Guaranteed Insurability   D.Entire Contract

C. Term insurance O D. Annuity 11. Which of the following is NOT the features of investment-linked insurance? O A. The insured can choose their own level of protection and investment. B. The insured can vary the amount of the premium payments or coverage according to their changing financial circumstances. C. The insured can choose from wide variety of funds to invest in, depending on the level of risk that they comfortable with. O D. The tenures can be arranged to coincide with future events 12. Below are the features of the insurance policy under what types of life insurance? *

Choose the best answer. 1.Which statement is TRUE about an insurance contract? * a.The insurer is the party that has an obligation under an insurance contract to compensate a policyholder if an insured event occurs. b.The policyholder is the party that has a right to compensation under an insurance contract if an insured event occurs. c.The insured event is an uncertain future event that is covered by an insurance contract and creates insurance risk. d.All of these statements are true about an insurance contract. 2. IFRS 17 provides that insurance contracts should * a.Comply with all existing IFRS b.Generally continue to be subject to existing accounting policies. c.Comply with the IFRS Framework document. d.Be covered by IAS 32 and IFRS 9 3.An insurance contract can contain both deposit and insurance elements. An example might be a reinsurance contract where the cedant receives a repayment of the premiums at a future date if there are no claims under the contract. Effectively this…

Collision and comprehensive: Multiple Choice O O O O O Only pay the insurer Only pay the insured Are compulsory insurance Have no deductibles None of the answer choices are correct.

Statement 1: If an insured outlived his policy and received from the insurance company an amount equivalent to the total premiums paid, such amount is taxable. Statement 2: If the insured dies and the beneficiary receives payment from the insurance company, the amount received in excess of the total premiums paid shall be taxable. A. Both statements are true B. Both statements are false C. Only statement 1 is true D. Only statement 2 is true

34) 1. Fundamental purposes of the principle of indemnity include which of the following? I- To reduce physical hazards II- To prevent the insured from profiting insurance

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QUESTION 12 Which of the following statements abcut claims settlement is true a Independent adjustors may be used in a geographic area where the volume of business is too low for an insurer to have its own adjustors Ob.A company adjustor is hired by a policyholder to represent him or her if the polcyholder does not agree wth the caim setiement offered by the insurer. OLA public adjustor is a salaried employee who works for one insurer d. Agents are never authorized to sett e claims

TRUE OR FALSE 1. PFRS 17 allows and insurer to charge its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. 2. Outward reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. 3. Premium deficiency arises when the unearned premium reserve is less than the estimated claimed related expenses. 4. In accordance with the accrual assumption, the full amount of the premium is recognized immediately as income when received; instead, the premium is normally regarded as being earned evenly over the period of the policy.

TRUE OR FALSE 1. PFRS 17 allows and insurer to charge its accounting policies for insurance contract only if, as a result of its financial statements present information that is more relevant. 2. Outward reinsurance is where the premium and commission shall be accounted for in the different accounting period original policy to which the reinsurance relates. 3. Premium deficiency arises when the unearned premium reserve is less than the estimated claimed related expenses.

If a term life insurance policy isconvertible, it can be: Question38 options: a) revised as neededby the insurer. b) transferred tothe life of another person in thefuture. c) changed to health ordisability protection. d)exchanged for cash in the future.e) changed to a comparablewhole life policy in the future.

Which of the following is NOT true about a temporary insurance agreement? Select one: a. It can only cover life insurance and living benefits b. It expires the date the policy becomes effective c. The applicant will submit the premium with the application d. It can be provided if the agent believes the policy will be issued