Exam (elaborations)
ISR3702 Exam pack 2024(Life Insurance)
- Course
- Life Insurance
- Institution
- University Of South Africa
ISR3702 Exam pack 2024(Life Insurance)
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ISR3702 LATESTEXAM PACK 2024
QUESTIONS AND
ANSWERS
FOR ASSISTANCE CONTACT
EMAIL:gabrielmusyoka940@gmail.com
, lOMoARcPSD|44660598
FIRST SEMESTER ASSIGNMENT 01
Due date 03 May 2021
Unique number 822330
Aim: To evaluate your knowledge in terms of the module outcomes.
Answer the following questions and submit your assignment at https://myunisa.ac.za.
Use the following extract to answer questions 1.1 to 1.3 below:
The professional development plan of XYZ Life indicates that the recently appointed chief
executive officer wants to learn more about the policyholder protection rules and the legal
requirements for technical reserves. The human resource director wants to be able to
differentiate between insurance and general courses to direct 80% of the training budget to
insurance-related courses as the core business. The receptionist is concerned about her
declined disability claim and would like to improve his/her knowledge of insurance.
1.1 Which of the following is the statutory industry body that will assist the chief executive
officer with issues pertaining to policyholder rules?
1. Insurance Sector Education and Training Authority
2. Prudential Authority located at the Reserve Bank
3. Life Insurance Ombudsman
4. Ombud for Financial Services Providers
1.2 Suppose Mokoena, who is employed as an underwriter, submits an application for
assessor training. Which of the following industry bodies would assist the human resource
director in determining whether this application is for insurance training?
1. Financial Services Conduct Authority
2. Insurance Institute of South Africa
3. Insurance of Retirement Funds
4. South African Society of Insurance Medical Underwriters
1.3 Which of the following industry bodies could assist the receptionist with her/his concerns?
1. Financial Services Conduct Authority
2. Pension Funds Adjudicator
3. Life Insurance Ombudsman
4. Ombud for Financial Services Providers
2
, lOMoARcPSD|44660598
ISR3702/101/3/2021
1.4 Choose the correct statement below regarding insurable interest. Lindi and Gert are
recipients of old-age pension grant. They have two children, Suzen and Betty, who are not
living with them. Suzen is permanently disabled and struggling to meet the necessities of
life. Betty is married out of community of property with no accrual. She deposits money
into her parents’ bank account and Suzen’s bank account on a monthly basis.
1. Lindi, Gert and Suzen have an insurable interest in Betty’s life.
2. Lindi and Gert have an insurable interest in Betty’s life.
3. Suzen has an insurable interest in her parents’ life.
4. Suzen has an insurable interest in Betty’s life.
1.5 Molefe nominated her son Ceko and her friend John as beneficiaries when completing the
human resource forms for both group life and pension. Which of the following is correct
regarding section 37 of the Pension Funds Act?
1. Ceko is a nominee.
2. Ceko is a dependant.
3. Both Ceko and John are dependants.
4. Both Ceko and John are nominees.
1.6 The university has a group life policy for all its permanent employees. It pays 5% while
employees pay 2% as monthly premium contributions. Choose the correct statement
below regarding the tax treatment of contributions.
1. The premiums paid by both the university and employees are tax-deductible.
2. The premiums paid by both the university and employees are not tax-deductible.
3. Only the premium paid by the university is tax-deductible.
4. Only the premium paid by employees is tax-deductible.
1.7 Kodwa started completing a spreadsheet of all his employer’s and his own contributions
made to the retirement fund right from the first month of his working life. On retirement,
Kodwa added up all the contributions and used the total as a measure of the correctness
of the receivable pension benefit. Of which type of fund was Kodwa a member?
1 Defined benefit
2 Defined contribution
3 Pension fund
4 Provident fund
3
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, lOMoARcPSD|44660598
1.8 Which of the following statements is correct if Sihle pays a monthly premium of R280 for
her life policy?
1 The R280 premium is after-tax money.
2 The R280 premium is before-tax money.
3 The R280 premium is subject to an effective tax rate of 18%.
4 The R280 premium is subject to the average tax rate.
1.9 What action must the life insurer take after rejecting a life policy claim submitted by the
dependants of the insured deceased?
1 Immediately provide a verbal explanation of the reasons for rejecting the claim.
2 Cancel the policy life reserves.
3 Allow the dependants of the deceased no less than 120 days to make representation.
4 Refund all the premiums received from the insured.
1.10 Choose the retirement fund that is appropriate for a recently qualified graduate who has
started her own business and wants to save on income tax.
1 Retirement annuity
2 Pension
3 Provident
4 Pension/provident preservation
1.11 Choose the appropriate annuity product if Keit, the pensioner, does not wish to leave any
money from his pension to his relatives when he dies.
1 Annuity certain
2 Immediate single annuity
3 Guaranteed annuity
4 Annuity arranged
1.12 The retirement nomination form of employee X shows Ms E as a beneficiary, but after
some verifications, the trustees of the pension fund pay the whole amount to Ms A, who
was not on the nomination form. Ms A must have been a …
1 child of the employee.
2 spouse of the employee.
3 dependant of the employee
4 relative of the employee.
4
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