English New IC33 Paper 18

Que. 1 : _________________________ is the consideration or amount paid by the insured to the insurer for insuring the subject matter of insurance, under a contract of insurance.
   1.  Premium
   2.  Claim
   3.  Policy document
   4.  Prospectus
Que. 2 : Which of the below are some regulation and factor of premium?
   1.  As per Insurance Act, premium is to be paid in advance, before the start of the insurance cover. This is an important provision, which ensures that only when the premium is received by the insurance company, a valid insurance contract can be completed and the risk can be assumed by the insurance company. This section is a special feature of non-life insurance industry in India.
   2.  Section 64 VB of the Insurance Act-1938 provides that no insurer shall assume any risk unless and until the premium is received in advance or is guaranteed to be paid or a deposit is made in advance in the prescribed manner
   3.  Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with or dispatch by post to the insurer the premium so collected in full without deduction of his commission within twenty-four hours of the collection excluding bank and postal holidays.
   4.  All of the above
Que. 3 : Which of the below are some regulation and factor of premium?
   1.  It is also provided that the risk may be assumed only from the date on which the premium has been paid in cash or by cheque.
   2.  Section 64 VB of the Insurance Act-1938 provides that no insurer shall assume any risk unless and until the premium is received in advance or is guaranteed to be paid or a deposit is made in advance in the prescribed manner
   3.  Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with or dispatch by post to the insurer the premium so collected in full without deduction of his commission within twenty-four hours of the collection excluding bank and postal holidays
   4.  All of the above
Que. 4 : Which of the below are some regulation and factor of premium?
   1.  It is also provided that the risk may be assumed only from the date on which the premium has been paid in cash or by cheque.
   2.  Where the premium is tendered by postal or money order or cheque sent by post, the risk may be assumed on the date on which the money order is booked or the cheque is posted as the case may be.
   3.  Where an insurance agent collects a premium on a policy of insurance on behalf of an insurer, he shall deposit with or dispatch by post to the insurer the premium so collected in full without deduction of his commission within twenty-four hours of the collection excluding bank and postal holidays.
   4.  All of the above
Que. 5 : Which of the below are some regulation and factor of premium?
   1.  It is also provided that the risk may be assumed only from the date on which the premium has been paid in cash or by cheque.
   2.  Where the premium is tendered by postal or money order or cheque sent by post, the risk may be assumed on the date on which the money order is booked or the cheque is posted as the case may be.
   3.  Any refund of premium which may become due to an insured on account of the cancellation of policy or alteration in its terms and conditions or otherwise, shall be paid by the insurer directly to the insured by a crossed or order cheque or by postal / money order and a proper receipt shall be obtained by the insurer from the insured. It is the practice now a days to credit the amount directly to the Insured’s bank account. Such refund shall in no case be credited to the account of the agent. There are exceptions to the above pre-condition payment of premium, provided in the Insurance Rules 58 and 59. One is for payment in instalments in case of policies which run for more than 12 months such as life insurance policies. Others include payment through a bank guarantee in specified cases where the exact premium cannot be ascertained in advance or by debit to a Cash Deposit account maintained by the client with the insurer.
   4.  All of the above
Que. 6 : Which of the below is a method of payment of premium?
   1.  Cash
   2.  Any recognised banking negotiable instrument such as cheques, demand drafts, pay order, banker’s cheques drawn on any schedule bank in India;
   3.  Postal money order
   4.  All of the above
Que. 7 : Which of the below is a method of payment of premium?
   1.  Credit or debit cards
   2.  Bank guarantee or cash deposit
   3.  Internet
   4.  All of the above
Que. 8 : Which of the below is a method of payment of premium?
   1.  E-transfer
   2.  Direct credits via standing instruction of proposer or the policyholder or the life insured through bank transfers
   3.  Any other method or payment as may be approved by the Authority from time to time
   4.  All of the above
Que. 9 : In case the premium payment is made by cheque, then which of the below statement will hold true?
   1.  The risk may be assumed on the date on which the cheque is deposited by the insurance company
   2.  The risk may be assumed on the date on which the cheque is received by the insurance company
   3.  The risk may be assumed on the date on which the cheque is posted
   4.  The risk may be assumed on the date on which the cheque is issued by the proposer
Que. 10 : The _________________ is a formal document which provides an evidence of the contract of insurance. This document has to be stamped in accordance with the provisions of the Indian Stamp Act, 1899.
   1.  Prospectus
   2.  Proposal form
   3.  Policy
   4.  Renewal terms of the policy

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