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 4 of 6

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Q31.
In case of surrender, how is the computation of ageing of data done for L-39: Data on Settlement of claims?

a.

From the date of policy issuance to the date of settlement

b.

From the date of policy issuance to the date of surrender

c.

From the date of application of surrender to the date of settlement of the claim

d.

From the date of settlement of the claim to the date of policy issuance

Discuss
Answer: (c).From the date of application of surrender to the date of settlement of the claim Explanation:In case of surrender, the computation of ageing of data for L-39: Data on Settlement of claims is done from the date of application of surrender to the date of settlement of the claim.
Q32.
What is clarified regarding the schedule references in the guidelines?

a.

Schedule references in public disclosures will change the schedule reference of the financial statement under Accounting Regulations

b.

Schedule references in public disclosures will not change the schedule reference of the financial statement under Accounting Regulations

c.

Schedule references in public disclosures are only for compliance with circular requirements

d.

Schedule references in public disclosures are optional and may or may not be followed

Discuss
Answer: (c).Schedule references in public disclosures are only for compliance with circular requirements Explanation:The guidelines clarify that schedule references in public disclosures are only to comply with the circular requirements and will not change the schedule reference of the financial statement under Accounting Regulations.
Q33.
What does "L-1A-RA 'Fund Reserve'" pertain to according to the guidelines?

a.

It pertains to mortality reserve

b.

It pertains to linked business, ensuring separate disclosure under Linked Liabilities and Non-Linked Liabilities

c.

It pertains to general reserve

d.

It pertains to policyholder's reserve

Discuss
Answer: (b).It pertains to linked business, ensuring separate disclosure under Linked Liabilities and Non-Linked Liabilities Explanation:The guidelines mention that "L-1A-RA 'Fund Reserve'" pertains to linked business and is meant to ensure separate disclosure under Linked Liabilities and Non-Linked Liabilities.
Q34.
What is clarified regarding L-30 and L-31: Related Party Transactions in the guidelines?

a.

Disclosure is not required for related party transactions

b.

Disclosure is required only for certain related party transactions

c.

Disclosure is required for all related party transactions as per AS-18

d.

Disclosure is required only for non-related party transactions

Discuss
Answer: (c).Disclosure is required for all related party transactions as per AS-18 Explanation:The guidelines state that disclosure is required for all related party transactions as per AS-18, as required by Regulations on Financial Statements.
Q35.
What should be disclosed by way of notes to the Balance Sheet regarding contingent liabilities?

a.

It is not required to disclose contingent liabilities

b.

Contingent liabilities should be disclosed, but specific details are not necessary

c.

Detailed information on contingent liabilities should be provided

d.

Only acknowledged contingent liabilities need to be disclosed

Discuss
Answer: (c).Detailed information on contingent liabilities should be provided Explanation:The guidelines specify that contingent liabilities should be disclosed by way of notes to the Balance Sheet, and detailed information on contingent liabilities should be provided.
Q36.
What is included in the items to be disclosed regarding investments in the notes to the Balance Sheet?

a.

Only fully-paid investments

b.

Partly-paid up investments

c.

Investments in government securities

d.

Investments in equities only

Discuss
Answer: (b).Partly-paid up investments Explanation:Partly-paid up investments are included in the items to be disclosed by way of notes to the Balance Sheet regarding investments.
Q37.
What should be disclosed in the notes to the Balance Sheet concerning underwriting commitments outstanding?

a.

Underwriting commitments should not be disclosed

b.

Only acknowledged underwriting commitments need to be disclosed

c.

Underwriting commitments outstanding should be disclosed

d.

Only underwriting commitments related to life policies need to be disclosed

Discuss
Answer: (c).Underwriting commitments outstanding should be disclosed Explanation:Underwriting commitments outstanding should be disclosed by way of notes to the Balance Sheet.
Q38.
What should be disclosed regarding claims not acknowledged as debts in the notes to the Balance Sheet?

a.

Claims not acknowledged as debts do not need to be disclosed

b.

Claims not acknowledged as debts should be disclosed without specific details

c.

Detailed information on claims not acknowledged as debts should be provided

d.

Only acknowledged claims need to be disclosed

Discuss
Answer: (c).Detailed information on claims not acknowledged as debts should be provided Explanation:Detailed information on claims not acknowledged as debts should be provided by way of notes to the Balance Sheet.
Q39.
What is included in the items to be disclosed regarding guarantees given by or on behalf of the company in the notes to the Balance Sheet?

a.

Guarantees are not required to be disclosed

b.

Only acknowledged guarantees need to be disclosed

c.

Guarantees given by or on behalf of the company should be disclosed without specific details

d.

Detailed information on guarantees given by or on behalf of the company should be provided

Discuss
Answer: (d).Detailed information on guarantees given by or on behalf of the company should be provided Explanation:Detailed information on guarantees given by or on behalf of the company should be provided by way of notes to the Balance Sheet.
Q40.
What is the significance of disclosing accounting policies in financial statements for an insurance company?

a.

Accounting policies are not required to be disclosed

b.

Disclosing accounting policies is optional

c.

All significant accounting policies must be disclosed as per ICAI standards

d.

Accounting policies are disclosed only if they have changed in the current year

Discuss
Answer: (c).All significant accounting policies must be disclosed as per ICAI standards Explanation:All significant accounting policies in terms of the accounting standards issued by the ICAI must be disclosed, and any other accounting policy followed by the insurer should be stated in the manner required under Accounting Standard AS 1 issued by the ICAI.
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