Disclosure Norms for Life and Non Life Insurance Companies MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Disclosure Norms for Life and Non Life Insurance Companies, a fundamental topic in the field of IC 89 Management Accounting. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Disclosure Norms for Life and Non Life Insurance Companies MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Disclosure Norms for Life and Non Life Insurance Companies mcq questions that explore various aspects of Disclosure Norms for Life and Non Life Insurance Companies problems. Each MCQ is crafted to challenge your understanding of Disclosure Norms for Life and Non Life Insurance Companies principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 89 Management Accounting tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Disclosure Norms for Life and Non Life Insurance Companies MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

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Disclosure Norms for Life and Non Life Insurance Companies MCQs | Page 2 of 6

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Q11.
What is the role of disclosure requirements in achieving transparency in the insurance industry?

a.

They limit transparency

b.

They are unrelated to transparency

c.

They are a necessary precursor to transparency

d.

They hinder comparability between insurers

Discuss
Answer: (c).They are a necessary precursor to transparency Explanation:Disclosure requirements are considered a necessary precursor to transparency in the insurance industry.
Q12.
Why is providing basic business, management, and corporate governance information important in disclosures?

a.

It has no impact on stakeholders

b.

It satisfies domain disclosure requirements

c.

It hinders regulatory supervision

d.

It limits the information available to analysts

Discuss
Answer: (b).It satisfies domain disclosure requirements Explanation:Providing basic business, management, and corporate governance information satisfies domain disclosure requirements relevant to regulators, policyholders, investors, and other stakeholders.
Q13.
What is the purpose of disclosing financial performance for a specified period?

a.

To limit the information available to investors

b.

To facilitate understanding of the economic impact of changes

c.

To hinder regulatory supervision

d.

To discourage transparency

Discuss
Answer: (b).To facilitate understanding of the economic impact of changes Explanation:Disclosing financial performance for a specified period facilitates understanding of the economic impact of changes, including the basis, methods, and assumptions.
Q14.
How does disclosure contribute to comparability between insurers globally?

a.

By limiting the information available to analysts

b.

By providing inaccurate and irrelevant information

c.

By being unrelated to transparency

d.

By being a necessary precursor to transparency

Discuss
Answer: (d).By being a necessary precursor to transparency Explanation:Disclosure, as a necessary precursor to transparency, contributes to comparability between insurers globally.
Q15.
What is the purpose of the guidelines on periodic disclosures issued by IRDA?

a.

To limit the information available to insurers

b.

To clarify doubts raised by certain insurers and stakeholders

c.

To hinder the uniformity among insurers

d.

To discourage the display of audited financial statements

Discuss
Answer: (b).To clarify doubts raised by certain insurers and stakeholders Explanation:The guidelines on periodic disclosures by IRDA aim to clarify doubts raised by certain insurers and stakeholders and ensure uniformity among insurers.
Q16.
According to the guidelines, how often are insurers required to display information based on audited statements for the last 5 years?

a.

Monthly

b.

Quarterly

c.

Half-yearly

d.

Yearly

Discuss
Answer: (d).Yearly Explanation:According to the guidelines, insurers are required to display information based on audited statements on a yearly basis for the last 5 years.
Q17.
When does the financial year ending on 31st March 2010 mark the end of the block of five years for the disclosure of past data?

a.

It doesn't mark the end

b.

After the next 10 years

c.

After the next 5 years

d.

Immediately

Discuss
Answer: (c).After the next 5 years Explanation:The financial year ending on 31st March 2010 marks the end of the block of five years for the disclosure of past data, and this applies for the next 5 years.
Q18.
Which forms are for non-life insurance companies in the guidelines?

a.

L-26, L-27, L-28, L-33, L-34, and L-35

b.

NL-36, NL-28, NL-29, NL-35, NL-37

c.

NL-26, NL-27, NL-28, NL-33, NL-34, and NL-35

d.

I-26, I-27, I-28, I-33, I-34, and I-35

Discuss
Answer: (b).NL-36, NL-28, NL-29, NL-35, NL-37 Explanation:The forms for non-life insurance companies are NL-36, NL-28, NL-29, NL-35, NL-37.
Q19.
What clarification does the circular provide regarding the revision of audited financial statements?

a.

The audited financial statements must be revised yearly

b.

There is no need to revise the audited financial statements

c.

The audited financial statements must be revised every 2 years

d.

The revision is mandatory for the first 3 years

Discuss
Answer: (b).There is no need to revise the audited financial statements Explanation:According to the circular, there is no need to revise the audited financial statements; they remain unchanged for the disclosed past data.
Q20.
What clarification is provided regarding the breakup of the motor segment in the guidelines?

a.

Motor OD and Motor TP must be furnished separately for all years

b.

The breakup may be furnished from 2006-07 onwards, and prior to that, the aggregate figure may be provided

c.

The breakup is not required for any year

d.

The breakup must be provided only for the years after 2010-11

Discuss
Answer: (b).The breakup may be furnished from 2006-07 onwards, and prior to that, the aggregate figure may be provided Explanation:The guidelines clarify that the breakup of the motor segment into Motor OD and Motor TP may be furnished from 2006-07 onwards. Prior to that, the companies may provide the aggregate figure without the split.
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