Q. What is the primary purpose of the reserving policy in insurance?

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Q. How are estimates for smaller and simpler claims typically determined?

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Q. What approach is taken for larger and more complex claims?

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Q. Why is it crucial to revisit claims reserves regularly?

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Q. Why is it important for sub-classes to be as homogeneous as possible?

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Q. What challenge arises when building in IBNR and reported claims development into sub-class reserves?

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Q. How can the impact of fundamental changes on claims be addressed in reserve estimation?

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Q. What is the fundamental concept behind Modern Portfolio Theory (MPT)?

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Q. What trade-off does investing entail according to Modern Portfolio Theory?

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Q. What does Modern Portfolio Theory (MPT) primarily aim to achieve?

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Q. What is asset-liability management (ALM) primarily concerned with?

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Q. According to the Indian Regulations outlined, what is the minimum percentage requirement for investments in Central Government Securities?

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Q. What is the minimum percentage requirement for investments in Government securities and other Guaranteed securities, including Central Government Securities?

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Q. Which of the following statements regarding insurance accounting is NOT correct?

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Q. What are the three exceptions in general accounting standards for insurers carrying on general insurance business?

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Q. How should premium be recognized as income?

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Q. When should premium reserve for unexpired risks be created?

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Q. How should acquisition costs be accounted for?

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Q. What does the liability for outstanding claims include?

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Q. What should the accounting estimates for claims cost include?

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