Author name: Administrator

2411. What are the charges in a ULIP?

Policy Allocation Charge
Mortality charge
Both A & B
None of the above
✅ The correct answer is C.
The premium of ULIP is divided into three parts:
1. Firstly, there is a policy allocation charge (PAC) which is comprised of agents’ commission, policy setup costs, administrative costs and statutory levies.
2. The second component is the mortality charge which is the cost of providing risk cover.3 The balance of premiums after meeting the above two are allocated for the purchase of units.

229. Transferring entries from journal to ledger account is commonly known as

Recording
Transferring
Posting
Entry making
✅ The correct answer is C.
Transferring entries from journal to ledger account is commonly known as Posting. Posting refers to the process of transferring entries in the journal into the accounts in the ledger. Posting to the ledger is the classifying phase of accounting.

2414. The economic analysis expects the consumer to behave in a manner which is

Rational
Irrational
Emotional
Indifferent
✅ The correct answer is A.
The economic analysis expects the consumer to behave in a manner which is Rational. The assumption of rational behavior implies that people would rather be better off than worse off. Most conventional economic theories are based on the assumption that all individuals taking part in an action or activity are behaving rationally.

2417. Land only

Is a free gift of nature
Lacks geographical mobility
Is not hirable
a’ and ‘b’ both
✅ The correct answer is D.
Land only Is a free gift of nature and it lacks geographical mobility.

2419. In case of ULIPs, which of the following statements is correct?

Entire premium is invested in units
Premium less charges are invested
Premium less bonuses are invested in units
Premium less risk charges are invested
✅ The correct answer is B.
In a Ulip, the entire amount paid as premium is not used to purchase units. The insurers deduct certain charges and fees before allotting units. The remaining premium amount is invested in various asset classes such as debt, equity or both (called fund options) depending on policyholder’s choice.
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