Investment of Insurance Companies And IRDA Regulations MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Investment of Insurance Companies And IRDA Regulations, 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 Investment of Insurance Companies And IRDA Regulations 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 Investment of Insurance Companies And IRDA Regulations mcq questions that explore various aspects of Investment of Insurance Companies And IRDA Regulations problems. Each MCQ is crafted to challenge your understanding of Investment of Insurance Companies And IRDA Regulations 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 Investment of Insurance Companies And IRDA Regulations MCQs are your pathway to success in mastering this essential IC 89 Management Accounting topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Investment of Insurance Companies And IRDA Regulations. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Investment of Insurance Companies And IRDA Regulations knowledge to the test? Let's get started with our carefully curated MCQs!

Investment of Insurance Companies And IRDA Regulations MCQs | Page 10 of 16

Discover more Topics under IC 89 Management Accounting

Q91.
What is the basis for determining the applicable NAV for allotment of units?

a.

The closing NAV of the same day

b.

The closing NAV of the next business day

c.

The NAV of the last business day of the Financial Year

d.

The NAV as per the date of commencement of the policy for new policy contracts and the date of receipt of premium for renewals

Discuss
Answer: (d).The NAV as per the date of commencement of the policy for new policy contracts and the date of receipt of premium for renewals Explanation:For allotment of units, the applicable NAV shall be as per the date of commencement of the policy for new policy contracts and the date of receipt of premium for renewals.
Q92.
What does a "Business Day" mean?

a.

Any day other than holidays

b.

Any day declared by the Authority as a business day

c.

Days other than holidays where stock exchanges with nationwide terminals are open for trade

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:A "Business Day" defined as days other than holidays where stock exchanges with nationwide terminals are open for trade (other than the day on which exchanges are open for testing) or any day declared by the Authority as a business day.
Q93.
What is the frequency for reviewing the Investment Risk Management Systems and Process?

a.

Annually

b.

Every second year

c.

At the discretion of the insurer

d.

Quarterly

Discuss
Answer: (b).Every second year Explanation:The Investment Risk Management Systems and Process shall be reviewed at the beginning of every second year or such shorter frequency as decided by the Board of the insurer.
Q94.
What is required to be filed with the Authority along with the first quarter Returns regarding the Investment Risk Management Systems and Process?

a.

Certificate issued by Internal or Concurrent Auditor

b.

Certificate issued by Statutory Auditors

c.

Certificate issued by the Chartered Accountant firm

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The Investment Risk Management Systems and Process shall be reviewed at the beginning of every second year or such shorter frequency as decided by the Board of the insurer, by a Chartered Accountant firm, and the certificate issued by such Chartered Accountant shall be filed with the Authority along with the first-quarter Returns. The Statutory Auditors shall also confirm the same in the Annual Accounts.
Q95.
What is the responsibility of the board regarding the Investment Risk Management System and process?

a.

Implement and certify

b.

Review and certify

c.

Design and implement

d.

Outsource and review

Discuss
Answer: (a).Implement and certify Explanation:The board shall implement the Investment Risk Management System and process mandated by the Authority, and the implementation shall be certified by a Chartered Accountant firm as per the procedure laid down in the Technical Guide on "Review and Certification of Investment Risk Management Systems and Process of Insurance Companies" issued by the Institute of Chartered Accountants of India.
Q96.
Who is typically expected to head the Audit Committee of the Board?

a.

Chief Executive Officer

b.

Chief of Finance

c.

Chartered Accountant

d.

Chief Investment Officer

Discuss
Answer: (c).Chartered Accountant Explanation:The Audit Committee of the Board shall be headed by a Chartered Accountant if he is a member of the Board of the insurer.
Q97.
What is the responsibility of the Internal or Concurrent Auditor with regard to investment transactions?

a.

Conducting a review of investment transactions

b.

Auditing investment transactions covering both shareholders and policyholders funds

c.

Recommending changes in investment transactions

d.

Managing investment transactions

Discuss
Answer: (b).Auditing investment transactions covering both shareholders and policyholders funds Explanation:The Internal or Concurrent Auditor is responsible for auditing investment transactions covering both shareholders and policyholders funds.
Q98.
What should be covered in the quarterly Internal/Concurrent audit report?

a.

Only policyholders funds

b.

Only shareholders funds

c.

Both shareholders and policyholders funds

d.

Only investment transactions

Discuss
Answer: (c).Both shareholders and policyholders funds Explanation:The quarterly Internal/Concurrent audit report should cover both shareholders and policyholders funds.
Q99.
What details should be included in the reports to be placed before the Board's Audit Committee?

a.

Investment Policy and its implementation status

b.

Investment Risk Management Systems and Process review

c.

Impact on investment operations, systems, and processes

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The reports should include details such as Investment Policy, its implementation status, Investment Risk Management Systems and Process review, and the impact on investment operations, systems, and processes.
Q100.
What category of investments is an insurer expected to invest in?

a.

Any category of investments

b.

Categories listed in the regulations

c.

Categories listed in the Insurance Act of 1938

d.

Categories listed in the guidelines issued by the Authority

Discuss
Answer: (d).Categories listed in the guidelines issued by the Authority Explanation:An insurer is expected to invest in the exhaustive category of investments listed in the guidelines issued by the Authority.
Page 10 of 16