Practice Test

Q1) Which of the following insurance is not covered by general insurance? Show Answer

Q2) The value of the property insured is called ______. Show Answer

Q3) The period for the fire insurance policy is _______. Show Answer

Q4) The amount which can be demanded under the policy is ______. Show Answer

Q5) Property value gives ________ gives premium Show Answer

Q6) Premium is paid on _____ value Show Answer

Q7) In annuity calculations, the interest is usually taken as _____ Show Answer

Q8) An annuity in which each payment is made at the end period is called? Show Answer

Q9) Which of the following is an example of perpetual annuity? Show Answer

Q10) A shop valued Rs 2,00,000 is insured at 80% of it's value. if the rate of premium is 4% then the premium is Show Answer

Q11) Stock worth Rs 4,00,000 is insured for Rs 2,25,000. if agent's commission is Rs 2400 at the rate of 12% then the amount of premium paid is Show Answer

Q12) A property valued at Rs 3,50,000 was insured for 2,50,000. Property worth Rs 1,75,000 was burnt completely due to fire. How much claim can be done under the policy? Show Answer

Q13) If the rate of premium on life policy of Rs 65,000 for 25 years is Rs 55 per year per thousand, what is the total premium paid? Show Answer

Q14) If the claim under the policy is Rs 4,000 and ratio of property value to policy value is 5:4 then loss occurred is Show Answer

Q15) The present value of an immediate annuity of Rs 10,000 paid each other quarter for four quarters at 16% p.a compounded quarterly is Rs_______ Show Answer

Q16) The accumulated amount after 3 years of an immediate annuity of Rs 5,000 p.a with interest rate of 6% compounded annually is Rs ______ Show Answer

Q17) A gadget costing Rs 13,000 was bought making a down
payment of Rs 3,000 and agreeing to repay the remaining by making four equal payments at the end of each year, for 4 years, with interest rate compounded at 14% p.a. The annual installment would be Rs _______ Show Answer

Q18) An annuity in which the terminal date is not known is called as _________ Show Answer

Q19) The present value of an immediate annuity for 4 years at 10% p.a compounded annually is Rs 23,400. it's accumulated after 4 years would be Rs ___________ Show Answer

Q20) A company set aside Rs 80,000 at the end of every year to create a sinking fund. What will be the amount at the end of 4 years at 9% p.a? Show Answer

Q21) If the amount works out to be Rs 53,680 for an annuity of Rs 10,000 paid at the end of each year with interest compounded at 20% p.a then the number of years are Show Answer

Q22) If an immediate annuity of Rs 60,000 paid for 3 years amounts to Rs 1,98,600, what is the rate of interest compounded p.a? Show Answer

Q23) For an immediate annuity paid for 4 years with interest compounded at 10% p.a the present value is Rs 12,679.46. What is the accumulated value after 4 year? Show Answer

Q24) If for an immediate annuity r = 10% p.a, P = Rs 12,679.46 and A = Rs 18,564, then the amount of each annuity is Show Answer

Q25) The relation between accumulated annuity 'A' and present value 'P ' is Show Answer

Q26) “A contract that pledges payment of an agreed upon amount to the person (or his/her nominee) on the happening of an event covered against” is technically known as Show Answer

Q27) Insurance companies collect a fixed amount from their customers at a fixed interval of time. This amount is called Show Answer

Q28) Following are different types of insurance.
I. Life insurance
II. Health insurance
III. Liability insurance Show Answer

Q29) By taking insurance, an individual Show Answer

Q30) You get payments of Rs.8,000 at the beginning of each year for five years at 6%, what is the value of this annuity? Show Answer

Q31) In an ordinary annuity, payments or receipts occur at Show Answer

Q32) Amount of money today which is equal to series of payments in future is called Show Answer

Q33) Rental payment for an apartment is an example of Show Answer

Q34) ______ is a series of constant cash flows over a limited period of time. Show Answer

Q35) A retirement annuity is particularly attractive to someone who has Show Answer

Q36) General insurance covers life, fire, and theft. Show Answer

Q37) The amount of claim cannot exceed the amount of loss. Show Answer

Q38) Accident insurance has a period of five years. Show Answer

Q39) Premium is the amount paid to the insurance company every month. Show Answer

Q40) Payment of every annuity is called an installment. Show Answer

Q41) Annuity certain begins on a fixed date and ends when an event happens. Show Answer

Q42) Annuity contingent begins and ends on certain fixed dates. Show Answer

Q43) The present value of an annuity is the sum of the present value of all installments. Show Answer

Q44) The future value of an annuity is the accumulated values of all installments. Show Answer

Q45) Sinking fund is set aside at the beginning of a business. Show Answer