SET C
ENGLISH
AGENCY TRAINING & DEVELOPMENT DEPT.
AIA CO. LTD
1.
2.
3.
6.
a mutual company
a proprietary company
a co-operative company
None of the above
5.
4.
7.
The principle of contribution stipulates that when two or more policies covering for
the same risk, the insured ________
A.
B.
C.
D.
8.
9.
11.
When the preparation of policies and renewals & etc. is being carried out in the
head office
When only the preparation of policies and renewals of policies are carried out in
the branches concerned
When the company has no branches
When the underwriting, claims ad servicing of the branch business are handled
at the respective branches up to a pre-arranged limit
10.
hazard
loss
peril
risk
A burglar who has a personal accident policy suffers injury during a burglary job.
The insurance company is not liable to pay for the claim because:
A.
B.
C.
D.
it is a self-inflicted injury
the risk is of illegal nature
the risk is expected
he attempted suicide
12.
The Takaful Act 1984 provides for the establishment of the ___________ whose function
is to advise the Takaful company on its operation in order to ensure that it does not
involve itself in any element which is not approved by the Islamic Religion Law.
A.
B.
C.
D.
13.
14.
Registration of insurers
Solvency of the insurer
Compulsory deposit by the insurer
All of the above
15.
16.
17.
ratify
B.
C.
D.
18.
19.
annually
quarterly
monthly
any of the above
23.
rebating
twisting
misrepresentation
underwriting
22.
amount of premium sufficient to pay total claims, as and when they arise
gross premium less expense
premium charged on riders attached to a basic policy
premium charged to the policyholder
Mr. Lee was working with Insurance company A before he changed to Insurance company B.
He then brought his customers over to company B by asking them to discontinue their
existing policies with company A. This situation is called ___________
A.
B.
C.
D.
21.
Incontestability clause
Days of grace
Suicide clause
Assignment
20.
rectify
notify
dismiss
A.
B.
C.
D.
24.
The 'burden of proof of death of a life assured caused by suicide' is laid on the _______
A.
B.
C.
D.
25.
RM8,003.38
RM8,003.00
RM8,600.00
RM9,938.38
28.
rate of morality
rate of mortality
rate of morbidity
rate of surviving
27.
court
claimant
certified doctor
insurance company
The chances of dying in a year or at a specific age is commonly termed as the __________
A.
B.
C.
D.
26.
Bonus usually takes the form of cash distribution and is usually contingent upon
payment of the next premium
Bonus is declared as proportion of the sum assured and the bonuses accumulated
under the same circumstances as the original sum assured
Bonus allocated is in proportion to the sum assured and the bonuses
accumulated under the policy
Bonuses are normally declared on the valuation date of the policy year
preceding that date, which is in arrears
Life insurance can be classified into three (3) main businesses. They are _______
A.
B.
C.
D.
29.
30.
An insured can return a policy within _______ from receipt of the policy with a
written notice. The insurer will then have to refund the premium.
A.
B.
C.
D.
31.
32.
33.
15 weeks
5 days
15 days
30 days
group policy
whole life policy
endowment policy
term policy
home-service policy
A.
B.
C.
D.
i, ii, iii
i, ii, iv
ii, iii, iv
ii, iii, v
The three (3) common methods that value the assets of a life office are _______
i
ii
iii
iv
cost price
book value
actuarial valuation
market value
A.
B.
C.
D.
i, ii, iii
i, iii, iv
ii, iii, iv
i, ii, iv
A.
B.
C.
D.
34.
The difference between gross premium and net premium is due to________
A.
B.
C.
D.
35.
Mr. and Mrs. Chong both aged 70 & 60 respectively received income payment from
an annuity company. The income will be paid as long as either one annuitant is alive.
The income payment shall cease upon death of the last annuitant.
What type of annuity contract has the couple acquired?
A.
B.
C.
D.
38.
contract of indemnity
valued contract
contract of adhesion
unvalued contract
Mr. Chong, 25 years old, has effected a term policy of RM100,000 for 30 years. When
he reached 55 years old, he will receive__________
A.
B.
C.
D.
37.
rate of morality
rate of interest
expenses loading
commission
36.
Deferred annuity
Single life annuity
Last survivor annuity
Joint life annuity
D.
39.
40.
August 8
August 10
August 17
April 5
Which of the following policies is not eligible for income tax relief in respect
of the premium paid?
A.
B.
C.
D.
43.
42.
An endorsement
A declaration
A letter of extension
A letter of acceptance
41.
Section 44(A) of the Insurance Act 1963/96 states that any act performed by an agent
is deemed to be of knowledge to the insurer unless:
A.
B.
C.
D.
44.
45.
What is a risk?
A.
B.
C.
D.
46.
B.
C.
D.
C.
D.
The charge for covering the cost of mortality alone is called Risk Premium
Net Premium is the charge computed after taking into account of
mortality & interest
Net Premium provides for expenses
Gross premium is derived from taking net premium add loading for expenses
add loading for profits & contingencies
Section 161 of the Insurance Act 1996 provides that where a claim upon death of
the policyowner is not paid within________days of receipt of intimation of the claim
the insurer should pay a minimum compound of _________per annum
A.
B.
C.
D.
49
48
Causes of losses
Uncertainty of losses
Occurrence of losses
Carelessness in decision making
47.
90 days, 7%
60 days, 3%
60 days, 4%
30days, 3.5%
The following conditions apply for contribution. Which of the following is/are true?
i
50.
51.
ii
iii
iv
A.
B.
C.
D.
i, ii, iii
i, iii, iv
ii, iii, iv
i, ii, iv
A.
B.
C.
D.
i, ii, iii
ii, iii, i
iii, ii, i
iii, i , ii
When a proposal is submitted to the insurance company without the initial premium and
the proposal is approved by the company, a letter of acceptance is issued to the
proposer requesting him to make the necessary payment of premium,
often within ________ days
A.
B.
C.
D.
52.
In cases where there is an extra loading on the proposal, a letter indicating the
loading is issued to the proposer as a___________
A.
B.
C.
D.
53
15
30
60
90
offer-counter
counter-offer
off-counter
one off-counter
The purpose of back dating the commencement date of a policy to an earlier date is to
benefit the proposer for paying the premium applicable to a lower age. Usually, this
back-dating exercise is up to a maximum of ________months
A.
B.
C.
D.
54.
3
6
8
9
Calculate the age for Esther should the following insurer adopt different bases for arriving at
the age of an individual in the following order.
Insurance co. A:
Age last birthday
Insurance co. B :
Age next birthday
Insurance co. C:
Age nearest birthday
Proposer's date of birth:
21 October 1972
Date of the proposal submitted: 2 Dec 2003
A.
B.
C.
D.
55.
56.
57.
31, 32, 31
31, 31, 32
32, 31, 32
32, 32, 31
The term life insurance used in the Code of Ethics and Conduct covers all types of:
i
ii
iii
iv
v
Home-Service
Ordinary Life Insurance
Annuities
Pension Contracts & Personal Accidents
Permanent Health Insurance
A.
B.
C.
D.
i, ii, iii, iv
i, ii, iii, v
ii, iii, iv, v
All of the above
A.
B.
C.
D.
i, ii, iii
i, ii, iv
ii, iii, iv
All of the above
i
ii
iii
iv
A.
B.
C.
D.
58.
ii
iii
iv
A.
B.
C.
D.
The Takaful company provides the following types of family takaful plan for
participation by both individuals and corporate bodies except:
A.
B.
C.
D.
60.
i, ii, iii
ii, iii, iv
i, iii, iv
All of the above
Which of the following statements are not true regarding Group Insurance?
i
59.
a void contract
a voidable contract
an unenforceable contract
no contract