4. When a death claim is payable?

a. If a policy holder dies during the term of policy

b. If a policy holder dies after surrendering a policy

c. If a policyholder dies after maturity of a policy

d. If insured dies after Foreclosure of a policy

7. Re insurance is

a. A risk transfer mechanism and spreads the risk

b. Organized once a year in negotiations with reinsurers.

c. A mechanism to transfer high business to another insurer

d. Only necessary when an insurer is new or inexperienced in a class of business

10. What are the requirements for a valid and binding contract?

a. Offer, acceptance, consideration to create legal relationship

b. Offer, acceptance, certainty, consideration, and intention to create legal relations.

c. Offer, acceptance, certainty, consideration and reasonableness.

d. Offer, acceptance, certainty, practicality and intention to create legal relations

8. The insurer plays a role in the economic development of the country in following ways

a. The job potential increases

b. All of the above

c. Releases capital for new investments.

d. Money collected is invested in infrastructure.

What is unilateral contract?

a. A contract in which both parties are legally bound to perform their side of the agreement.

b. A unilateral contract is a contract whereby only one party promises to perform an act if the other party performs a stipulated act, but the other party is not an obligation to perform the stipulated act.

c. A contract involving only one party

d. A contract that either party can withdraw from at any time.

6. Reinsurance allows an insurance company to

a. All of these

b. Finance its expanding volume

c. Stabilize its underwriting results

d. Expand its capacity

Whose obligation is to pay claim?

a. Proposer.

b. Insured

c. Insurer

d. Underwriter