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 3 of 6

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Q21.
What is the requirement for reporting premium and claims in the guidelines?

a.

They must be reported on a gross basis for all years

b.

They must be reported on a net basis for all years

c.

For previous years, they may be reported on a net basis, and from 2010-11 onwards, they must be reported as per the prescribed format

d.

There is no specific requirement for reporting premium and claims

Discuss
Answer: (c).For previous years, they may be reported on a net basis, and from 2010-11 onwards, they must be reported as per the prescribed format Explanation:The guidelines state that for previous years, premium and claims may be reported on a net basis as per accounting regulations. From 2010-11 onwards, they must be reported as per the prescribed format.
Q22.
How does the guideline recommend clubbing certain items for newspaper publication?

a.

Clubbing is not allowed for newspaper publication

b.

Annuity may be clubbed with pension, and health may be clubbed under the broader head of Linked and Non-linked business

c.

All items must be disclosed separately for newspaper publication

d.

Only life insurance should be disclosed in newspapers

Discuss
Answer: (b).Annuity may be clubbed with pension, and health may be clubbed under the broader head of Linked and Non-linked business Explanation:The guideline recommends clubbing Annuity with pension and health under the broader heads of Linked and Non-linked business for newspaper publication.
Q23.
What is the purpose of providing relaxation for newspaper publication in the guidelines?

a.

To encourage newspaper publication

b.

To minimize publication costs

c.

To standardize newspaper formats

d.

To increase the frequency of newspaper publication

Discuss
Answer: (b).To minimize publication costs Explanation:The guidelines provide relaxation for newspaper publication to minimize costs associated with publication.
Q24.
When is the publication of half-yearly limited review required according to the guidelines?

a.

Only for the 1st and 3rd quarters

b.

For all quarters

c.

Only for the 2nd half-year ending 31st March

d.

Only for the 1st half-year

Discuss
Answer: (a).Only for the 1st and 3rd quarters Explanation:According to the guidelines, the publication of half-yearly limited review is required for the 1st and 3rd quarters.
Q25.
What is clarified regarding the computation of the Net Retention Ratio in the guidelines?

a.

The ratio will be based on Gross Direct Premium written in India, and reinsurance accepted will be considered

b.

The ratio will be based on Net Premium, and reinsurance accepted will not be considered

c.

Reinsurance accepted will be considered for the numerator of the ratio

d.

The ratio will be based on Net Premium, and reinsurance accepted will be considered

Discuss
Answer: (b).The ratio will be based on Net Premium, and reinsurance accepted will not be considered Explanation:The guidelines clarify that for the Net Retention Ratio, the ratio will be based on Gross Direct Premium written in India, and reinsurance accepted will not be considered.
Q26.
What will be taken into account for the Underwriting Balance Ratio according to the guidelines?

a.

Premium deficiency only

b.

Expenses under the profit and loss account only

c.

Both premium deficiency and expenses under the profit and loss account

d.

Neither premium deficiency nor expenses

Discuss
Answer: (c).Both premium deficiency and expenses under the profit and loss account Explanation:The guidelines state that for the Underwriting Balance Ratio, premium deficiency and expenses under the profit and loss account will be taken into account.
Q27.
What is clarified regarding the Investment Yield (Gross and Net) in the guidelines?

a.

The yield will be calculated on a fund-wise basis, with realized gains and without realized gains

b.

The yield will be calculated only on a fund-wise basis

c.

The yield will be calculated without considering realized gains

d.

The yield will be calculated without specifying the basis

Discuss
Answer: (a).The yield will be calculated on a fund-wise basis, with realized gains and without realized gains Explanation:The guidelines clarify that for the Investment Yield (Gross and Net) in life insurance, the yield will be calculated on a fund-wise basis, both "with realized gains" and "without realized gains."
Q28.
What is mentioned regarding the Conservation Ratio in the guidelines?

a.

It will include group fund business, and a separate guideline on group insurance premium treatment will be issued

b.

It will exclude group fund business

c.

The treatment of group insurance premium is not specified

d.

It will include group fund business without any ambiguity

Discuss
Answer: (a).It will include group fund business, and a separate guideline on group insurance premium treatment will be issued Explanation:The guidelines state that the Conservation Ratio will include group fund business. However, a separate guideline on the treatment of group insurance premium will be issued to avoid ambiguity.
Q29.
How should the method of calculation of Persistency Ratio be as per the guidelines?

a.

As per the latest circular on the same dated 11th Feb. 2010

b.

As per the guidance provided by the Institute of Actuaries of India

c.

Both a and b

d.

As per the Appointed Actuary's Annual Report

Discuss
Answer: (c).Both a and b Explanation:The guidelines mention that the method of calculation of Persistency Ratio should be as per the latest circular on the same dated 11th Feb. 2010 and as per the guidance provided by the Institute of Actuaries of India.
Q30.
What is confirmed regarding the L-7 Benefits Paid in the guidelines?

a.

It covers only survival/money policies

b.

It covers only death policies

c.

It covers both survival/money policies and death policies

d.

It covers only endowment policies

Discuss
Answer: (a).It covers only survival/money policies Explanation:The guidelines confirm that the L-7 Benefits Paid covers survival/money policies. However, information for previous years does not need to be re-classified.
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