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 5 of 6

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Q41.
What should be disclosed regarding investments made in accordance with any statutory requirement?

a.

Investments made in accordance with statutory requirements do not need to be disclosed

b.

Only the amount of investments made needs to be disclosed

c.

Disclose the amount, nature, security, and any special rights of investments made in accordance with statutory requirements

d.

Disclose only the nature of investments made in accordance with statutory requirements

Discuss
Answer: (c).Disclose the amount, nature, security, and any special rights of investments made in accordance with statutory requirements Explanation:Investments made in accordance with any statutory requirement should be disclosed, including the amount, nature, security, and any special rights in and outside India.
Q42.
What is the requirement for disclosing the segregation into performing/non-performing investments for income recognition?

a.

Segregation of investments is not required to be disclosed

b.

Disclose only the total value of investments without segregation

c.

Disclose the segregation into performing/non-performing investments for income recognition

d.

Disclose only the percentage of non-performing investments

Discuss
Answer: (c).Disclose the segregation into performing/non-performing investments for income recognition Explanation:The segregation into performing/non-performing investments for income recognition should be disclosed.
Q43.
What should be disclosed regarding assets required to be deposited under local laws?

a.

No disclosure is required for assets deposited under local laws

b.

Disclose the total value of assets deposited without details

c.

Disclose assets deposited under local laws, including details of the extent required to be deposited

d.

Disclose only the percentage of assets deposited under local laws

Discuss
Answer: (c).Disclose assets deposited under local laws, including details of the extent required to be deposited Explanation:Assets to the extent required to be deposited under local laws should be disclosed, including details of the extent required to be deposited.
Q44.
What information should be disclosed concerning the percentage of business sector-wise?

a.

Percentage of business sector-wise is not required to be disclosed

b.

Disclose only the total percentage of business without sector-wise details

c.

Disclose the percentage of business sector-wise

d.

Disclose only the percentage of business in the primary sector

Discuss
Answer: (c).Disclose the percentage of business sector-wise Explanation:The percentage of business sector-wise should be disclosed.
Q45.
What does "Ageing of claims" refer to in the context of disclosure for insurance companies?

a.

Disclosing the average age of policyholders

b.

Distinguishing between claims outstanding for more than six months and other claims

c.

Providing details of claims filed by policyholders of different age groups

d.

Age-wise classification of insurance policies

Discuss
Answer: (b).Distinguishing between claims outstanding for more than six months and other claims Explanation:"Ageing of claims" refers to distinguishing between claims outstanding for more than six months and other claims.
Q46.
What information should be disclosed regarding premiums written from business in/outside India?

a.

Total premium written without distinction

b.

Premiums written only for business outside India

c.

Premiums written only for business in India

d.

Premiums, less reinsurance, written from business in/outside India

Discuss
Answer: (d).Premiums, less reinsurance, written from business in/outside India Explanation:Premiums, less reinsurance, written from business in/outside India should be disclosed.
Q47.
How should an insurance company disclose the extent of premium income recognized based on varying risk patterns, category-wise?

a.

No disclosure is required for premium income recognition

b.

Disclose only the total premium income without details

c.

Disclose the extent of premium income recognized based on varying risk patterns, category-wise, with basis and justification

d.

Disclose only the percentage of premium income recognized

Discuss
Answer: (c).Disclose the extent of premium income recognized based on varying risk patterns, category-wise, with basis and justification Explanation:The insurance company should disclose the extent of premium income recognized based on varying risk patterns, category-wise, with basis and justification.
Q48.
What should be disclosed regarding the value of contracts in relation to investments for purchases where deliveries are pending?

a.

No disclosure is required for pending deliveries

b.

Disclose only the total value of contracts without details

c.

Disclose the value of contracts for purchases where deliveries are pending

d.

Disclose only the percentage of pending deliveries

Discuss
Answer: (c).Disclose the value of contracts for purchases where deliveries are pending Explanation:The value of contracts for purchases where deliveries are pending should be disclosed.
Q49.
What basis should be disclosed concerning operating expenses relating to insurance business?

a.

No basis is required to be disclosed for operating expenses

b.

Disclose only the total operating expenses without details

c.

Disclose the basis of allocation of expenditure to various classes of business for operating expenses

d.

Disclose only the percentage of operating expenses

Discuss
Answer: (c).Disclose the basis of allocation of expenditure to various classes of business for operating expenses Explanation:The basis of allocation of expenditure to various classes of business for operating expenses should be disclosed.
Q50.
What should an insurance company disclose regarding accounting policies?

a.

Only significant accounting policies need to be disclosed

b.

All accounting policies in terms of the accounting standards issued by the ICAI

c.

Only policies related to investment need to be disclosed

d.

Accounting policies are not required to be disclosed

Discuss
Answer: (b).All accounting policies in terms of the accounting standards issued by the ICAI Explanation:All significant accounting policies in terms of the accounting standards issued by the ICAI should be disclosed.
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