Author name: Administrator

2872. In so far policy loans are concerned, which one of the following is correct?

The policy has to be assigned in favour of the insurer
Such an assignment will not cancel the nomination already made
Both A & B
None of the above
✅ The correct answer is C.
Both the statements are correct.
The policy has to be assigned in favour of the insurer and such an assignment will not cancel the nomination already made.

2857. Most frequently used methods of quantitative analysis include

variable equation
high low method
low high method
constant equation
✅ The correct answer is B.
Most frequently used methods of quantitative analysis include high low method. The high low method and regression analysis are the two main cost estimation methods used to estimate the amounts of fixed and variable costs.

2858. A policy with cover for an indefinite term is called

Whole life
Endowment
Money back
Term insurance
✅ The correct answer is A.
Whole life insurance is a life insurance policy which is guaranteed to remain in force for the insured’s entire lifetime, provided required premiums are paid throughout.

2860. Memory unit performs the function of ___________.

calculations at a very high speed
giving out the end product
controlling at the operating units
storing the data
✅ The correct answer is D.
Memory unit performs the function of storing the data. This unit can store instructions, data, and intermediate results. This unit supplies information to other units of the computer when needed. It is also known as internal storage unit or the main memory or the primary storage or Random Access Memory (RAM).

2862. Chances of cost to be considered as variable are more, if the

time horizons are long
time horizons are short
time horizons are irrelevant
time horizons are relevant
✅ The correct answer is A.
Chances of cost to be considered as variable are more, if the time horizons are long. Time horizon is the length of time over which an investment is made or held before it is liquidated.

2864. Which of the following is incorrect with regards to portfolio method?

The total investment return is shared between policyholders
No attempt is made to distinguish between investments of previous years over current investments
This method gives homogenized rates of return
None of the above
✅ The correct answer is D.
All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.
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