96. State which is incorrect statement

A) Life Insurance agents desirous of doing stand alone Health insurance business will have to be certified under IC-34 separately
B) Such life agents as above are exempt from passing IC-34 if they have been certified under IC-33 and if they undergo some internal training for 25 hours given by Health Insurance Company
C) Agents certified under IC 34 for non life insurer can do standalone Health insurance business after undergoing internal training for 25 hrs from the standalone health insurance company
D) No agent, individual or corporate of life and or non-life insurer shall offer his services to more than one standalone health insurance Company
✅ ANSWER: A
Term insurance can be bought as a stand -alone policy as well as a rider with another policy.

93. Which is not an appropriate reason for a proper financial planning?

A) Break-up of joint family system
B) Changing lifestyle
C) Underwriting
D) Change in behavioral pattern
✅ ANSWER: C
Underwriting is not a reason for proper financial planning. Underwriting services are provided by some large financial institutions, such as banks, or insurance or investment houses, whereby they guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee.

87. In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate

A) sales turnover of company
B) risk rate of company
C) beta coefficient of company
D) weighted mean of company
✅ ANSWER: C
In capital asset pricing model, covariance between stock and market is divided by variance of market returns is used to calculate beta coefficient of company. beta of a company measures how the company’s equity market value changes with changes in the overall market. It is used in the Capital Asset Pricing Model (CAPM) to estimate the return of an asset.

84. Overhead is also known as ________.

A) ongoing cost
B) basic cost
C) extra cost
D) chargeable expenses
✅ ANSWER: A
Overhead is also known as ongoing cost. Overhead is those costs required to run a business, but which cannot be directly attributed to any specific business activity, product, or service.

81. What are the correct statements?

A) Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation
B) Such an agency of bank acting for an insurer is known as corporate agency
C) A commercial bank is not barred from acting as an agent for insurance companies
D) All of the above
✅ ANSWER: D
All the statements are correct.
Bancassurance model can either be a bank forming an insurance company on its own or acting as an agent for another Insurance company without capital participation, Such an agency of bank acting for an insurer is known as corporate agency and A commercial bank is not barred from acting as an agent for insurance companies.

117. Term insurance is mainly suitable for which of the following needs?

A) Tax planning
B) Savings
C) Disease
D) Income replacement
✅ ANSWER: D
Term insurance is mainly suitable for income replacement.
Under regular term plans, the amount is paid as lump sum in the event of death of the policyholder. Under income replacement term plans, the sum assured is not paid in lump sum, but as monthly payout for a fixed number of years. This monthly payout takes away the pressure to generate income from your investment.

115. Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called

A) times series method
B) time horizon method
C) aggression method
D) regression method
✅ ANSWER: D
Statistical method used to measure average change in dependent variable, with respect to change of one unit in independent variable is called regression method. Regression analysis is a set of statistical processes for estimating the relationships among variables.

113. Book index is also called as ___________ index.

A) Vowel
B) Abound
C) Loose leaf book
D) Card
✅ ANSWER: B
Book index is also called as Abound index. A book index is simply a key to locating information contained in a book. It is also known as back-of-the-book index, as it is mostly found at the end of the book. The words of the Index are sorted Alphabetically.