Financial Underwriting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Financial Underwriting, a fundamental topic in the field of IC22 Life Insurance Underwriting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Financial Underwriting MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Financial Underwriting mcq questions that explore various aspects of Financial Underwriting problems. Each MCQ is crafted to challenge your understanding of Financial Underwriting principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC22 Life Insurance Underwriting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Financial Underwriting MCQs are your pathway to success in mastering this essential IC22 Life Insurance Underwriting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Financial Underwriting. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Financial Underwriting knowledge to the test? Let's get started with our carefully curated MCQs!

Financial Underwriting MCQs | Page 5 of 13

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Q41.
Is there a maturity benefit for the employer in employer-employee scheme?

a.

Yes, there is a maturity benefit for the employer

b.

No, there is no maturity benefit for the employer

c.

The maturity benefit depends on the terms of the policy

d.

None of the above

Discuss
Answer: (b).No, there is no maturity benefit for the employer Explanation:There is no maturity benefit that accrues to the employer under the policy in employer-employee scheme.
Q42.
What are the two approaches to implementing employer-employee scheme?

a.

Approach 1: Employee is the life to be insured and the policyholder of the policy; Approach 2: Employer is the policyholder of the policy

b.

Approach 1: Employer is the policyholder of the policy; Approach 2: Employee is the life to be insured and the policyholder of the policy

c.

Approach 1: Employer and employee both are policyholders of the policy; Approach 2: Only the employee is the policyholder of the policy

d.

None of the above

Discuss
Answer: (b).Approach 1: Employer is the policyholder of the policy; Approach 2: Employee is the life to be insured and the policyholder of the policy Explanation:The two approaches to implementing employer-employee scheme are Approach 1: Employer is the policyholder of the policy and Approach 2: Employee is the life to be insured and the policyholder of the policy.
Q43.
How is the premium paid by the employer treated for tax purposes in employer-employee scheme?

a.

The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee.

b.

The premium paid by the employer is treated as a perquisite and taxed to the employee.

c.

The premium paid by the employer is fully taxable to the employer.

d.

None of the above

Discuss
Answer: (a).The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee. Explanation:The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee in employer-employee scheme.
Q44.
What is HUF?

a.

A form of business organization

b.

A legal expression of joint families in Hindu community

c.

A type of insurance policy

d.

None of the above

Discuss
Answer: (b).A legal expression of joint families in Hindu community Explanation:HUF is a legal expression of joint families in Hindu community.
Q45.
Who is the Karta in HUF?

a.

The oldest male member

b.

The eldest son of the family

c.

The wife of the oldest male member

d.

None of the above

Discuss
Answer: (a).The oldest male member Explanation:The Karta in HUF is the oldest male member in the family.
Q46.
What is the role of Karta in HUF?

a.

To manage the joint property of all the coparceners

b.

To become the owner of the joint family property

c.

To distribute the joint family property among members

d.

None of the above

Discuss
Answer: (a).To manage the joint property of all the coparceners Explanation:The Karta in HUF generally manages the family property, which is regarded as the joint property of all the coparceners.
Q47.
Who are the coparceners in HUF?

a.

All male members of the family

b.

All female members of the family

c.

All married members of the family

d.

None of the above

Discuss
Answer: (a).All male members of the family Explanation:In HUF, all male members are referred to as coparceners.
Q48.
What is the status of daughters in HUF after marriage?

a.

They become members of their husband's family after marriage

b.

They become coparceners after marriage

c.

They remain members of their father's family/HUF after marriage

d.

None of the above

Discuss
Answer: (a).They become members of their husband's family after marriage Explanation:When an unmarried daughter marries, she becomes a member of her husband's family and does not remain a member of her father's family/ HUF.
Q49.
Can the wife of the Karta become the Karta after his demise?

a.

Yes

b.

No

c.

It depends on the decision of the eldest son

d.

None of the above

Discuss
Answer: (b).No Explanation:If the Karta passes away, his wife cannot become the Karta. His eldest son will take his place.
Q50.
Is an HUF eligible for tax deductions and exemptions?

a.

Yes

b.

No

c.

It depends on the type of tax law

d.

None of the above

Discuss
Answer: (a).Yes Explanation:An HUF is eligible for all the deductions and exemptions as described under the tax laws.
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