Question

Under what conditions are bonds or debentures issued by companies considered "Approved Investments" for Life Insurers?

a.

Only if rated AA or above

b.

Only if rated below AA

c.

Only if rated PI or above

d.

Only if unrated

Posted under IC 89 Management Accounting

Answer: (a).Only if rated AA or above Explanation:Bonds or debentures issued by companies are considered "Approved Investments" for Life Insurers only if rated not less than AA or its equivalent.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Under what conditions are bonds or debentures issued by companies considered "Approved Investments" for Life Insurers?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the significance of deposits with banks for Life Insurers?

View solution

Q. What types of securities are considered approved investments for General Insurance Companies under sec. 27B(1)?

View solution

Q. Which type of investments are excluded as approved investments for General Insurance Companies under sec. 27B(1)?

View solution

Q. What is the significance of Commercial Papers for General Insurance Companies?

View solution

Q. What type of deposits are considered approved investments for both Life and General Insurance Companies under the regulations?

View solution

Q. What is the significance of the LIC Act 1956 regarding investment caps for LIC (Life Insurance Corporation of India)?

View solution

Q. What change has the government approved regarding LIC's investment cap?

View solution

Q. How long is the tenure of the Reliance Infrastructure NCOs in which LIC invested?

View solution

Q. What type of investment opportunity do NCDs provide for debt investors like LIC?

View solution

Q. What competitive advantage do issuers have when offering NCDs to LIC?

View solution

Q. What is the maximum allowable exposure to venture funds and AIFs combined for a life insurance company?

View solution

Q. What is the minimum percentage of Category II AIFs that should be invested in infrastructure entities, SME entities, venture capital undertakings, or social venture entities?

View solution

Q. Why is investment income important for insurance companies?

View solution

Q. What are the two broad categories of investment avenues?

View solution

Q. How is the Rate of Return on an investment determined?

View solution

Q. How is Risk on Investment defined?

View solution

Q. Why is marketability/liquidity considered an important factor for investment decisions?

View solution

Q. What are the three types of Tax Benefits associated with investments?

View solution

Q. What are Government Securities also known as?

View solution

Q. What is the recommended reporting structure for the Investment Department in an insurance company?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Verbal Reasoning

Sharpen your logical thinking and reasoning abilities with our Verbal Reasoning...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

International Relations

Navigate the complex world of International Relations with our dedicated category....