PCE A & C ENGLISH SET C
1. Which of the following is correct?
2. What is the meaning of concealment?
3. An insurance company owned by shareholders is called:
4. Which of the following is NOT a role of an insurance agent?
5. The primary function of insurance is ____________
6. Among the following, which is NOT a characteristic of an insurable risk?
7. The principle of contribution stipulates that when two or more policies covering for the same risk, the insured ________
8. What do you understand when the organization of a company is said to be decentralized?
9. How do insurers encourage loss reduction and prevention?
10. The condition that increases the chance of loss is known as:
11. A burglar who has a personal accident policy suffers injury during a burglary job. The insurance company is not liable to pay for the claim because:
12. The Takaful Act 1984 provides for the establishment of the ___________ whose function is to advise the Takaful company on its operation in order to ensure that it does not involve itself in any element which is not approved by the Islamic Religion Law.
13. What is the meaning of consensus ad idem?
14. Which of the following is an important provision of the Insurance Act 1996?
15. Which of the following association of bureau provide for compassionate payment or allowance to person(s) injured or to dependant(s) of person(s) killed through the use of motor vehicle?
16. In life insurance, insurable interest must exist ____________
17. If an agent acts beyond his authority, a principal may subsequently _________ the act and make it valid.
18. Which of the following is a privilege in the life insurance contract?
19. The net premium in life insurance is the _________
20. Mr. Lee was working with Insurance company A before he changed to Insurance company B. He then brought his customers over to company B by asking them to discontinue their existing policies with company A. This situation is called ___________
21. Level premium can be paid __________
22. Maturity benefits are made up of the _________
23. Which of the following best defines 'surplus'?
24. The 'burden of proof of death of a life assured caused by suicide' is laid on the _______
25. The chances of dying in a year or at a specific age is commonly termed as the __________
26. What is the accumulated amount of RM8,000 if the amount is invested for three (3) years at a compounded interest rate of 7.5 percent per annum?
27. What is a reversionary bonus?
28. Life insurance can be classified into three (3) main businesses. They are _______
29. According to the statement of philosophy, life insurance business is based on ______
30. An insured can return a policy within _______ from receipt of the policy with a written notice. The insurer will then have to refund the premium.
31. The three (3) basic insurance policies are ________i group policy 
ii whole life policy 
iii endowment policy 
iv term policy 
v home-service policy 
32. The three (3) common methods that value the assets of a life office are _______

i cost price 

ii book value 

iii actuarial valuation 

iv market value

33. Which of the following factors determine the life premium rates?
34. The difference between gross premium and net premium is due to________
35. En. Kamaruddin purchased a RM100,000 Whole Life non-participating policy on his own life. The agreed sum insured of RM100,000 will be payable in the event of death of En.Kamaruddin. This type of contract is known as ____________
36. Mr. Chong, 25 years old, has effected a term policy of RM100,000 for 30 years. When he reached 55 years old, he will receive__________
37. Mr. and Mrs. Chong both aged 70 & 60 respectively received income payment from an annuity company. The income will be paid as long as either one annuitant is alive. The income payment shall cease upon death of the last annuitant. What type of annuity contract has the couple acquired?
38. A life proposed with hazardous occupation is said to have___________
39. __________ is simply an additional clause to the policy or variation of one or more of the conditions.
40. Insurers do not ___________ when dealing with sub-standard lives.
41. On March 1, Mr. Chong submitted a proposal form to an insurer. A letter of acceptance was then issued on March 8 and subsequently was delivered to Mr. Chong on March 10. Mr. Chong paid the initial premium on March 17. A life insurance policy was issued and delivered to Mr. Chong on April 5. Mr. Chong life insurance policy became effective on_______
42. Which of the following policies is not eligible for income tax relief in respect of the premium paid?
43. Section 44(A) of the Insurance Act 1963/96 states that any act performed by an agent is deemed to be of knowledge to the insurer unless:
44. Which of the following is not a provision of the Insurance Act?
45. What is a risk?
46. Which of the following about the proposal form is true?
47. Which of the following is not false?
48. Section 161 of the Insurance Act 1996 provides that where a claim upon death of the policyowner is not paid within________days of receipt of intimation of the claim the insurer should pay a minimum compound of _________per annum
49. The following conditions apply for contribution. Which of the following is/are true?

i At minimum, one policy of indemnity must be in force
ii The policies must cover a common interest 
iii The policies must cover a common peril which gives rise to the loss
iv The loss involves a common subject matter covered by the policies 

50. In consumer buying decision process, studies conducted in the U.S.A indicate that the most important factors for the selection of a particular insurer are as follow. Rank the following from the most important.

i Quality of coverage and services provided 
ii Policy benefits 
iii Reputation of the insurer

51. When a proposal is submitted to the insurance company without the initial premium and the proposal is approved by the company, a letter of acceptance is issued to the proposer requesting him to make the necessary payment of premium, often within ________ days
52. In cases where there is an extra loading on the proposal, a letter indicating the loading is issued to the proposer as a___________
53. The purpose of back dating the commencement date of a policy to an earlier date is to benefit the proposer for paying the premium applicable to a lower age. Usually, this back-dating exercise is up to a maximum of ________months
54. Calculate the age for Esther should the following insurer adopt different bases for arriving at the age of an individual in the following order.

Insurance co. A: Age last birthday 

Insurance co. B : Age next birthday 

Insurance co. C: Age nearest birthday 

Proposer's date of birth: 21 October 1972 

Date of the proposal submitted: 2 Dec 2003 

55. The term life insurance used in the Code of Ethics and Conduct covers all types of:

i Home-Service 

ii Ordinary Life Insurance 

iii Annuities 

iv Pension Contracts & Personal Accidents 

v Permanent Health Insurance 

56. What are the risks that are covered by life insurance?

i Death or injury to a person by an accident 

ii Premature death 

iii Continuous stream of income during retirement 

iv Sickness or Disability

57. What are the major objectives of LIAM?

i. To promote and represent the interests of the member companies and the life insurance companies 

ii. To make rules, regulations and tariffs and by-laws in consultation with the Director General of Insurance (DGI) for implementation by the members
iii.  To render where possible, to member companies such advice and assistance as may be required 

iv. To circulate information likely to be of interest to member companies, to collect, collate and publish statistics and other information relating to life insurance 

58. Which of the following statements are not true regarding Group Insurance?

i Group insurance coverage may be extended to cover employee's spouse and illegitimate children 

ii The lives assured must be in the regular employment of the assured employer 

iii Lives assured consists of full-time and casual employees 

iv The contract of group insurance is solely between the insurer and the insured 

59. The Takaful company provides the following types of family takaful plan for participation by both individuals and corporate bodies except:
60. The consequences of breaching the principle of Uberrima Fides leads to: