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.

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Investment of Insurance Companies And IRDA Regulations MCQs | Page 3 of 16

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Q21.
What is the responsibility of the internal/concurrent auditor related to the reconciliation of product and fund information?

a.

Monthly reconciliation of premium received with fund values

b.

Reporting on the automated system and process quarterly

c.

Annual reconciliation of premium received with fund values

d.

Reconciliation of premium received with fund values on a daily basis

Discuss
Answer: (b).Reporting on the automated system and process quarterly Explanation:The internal/concurrent auditor shall report on the automated system and process to handle the UIN wise reconciliation and value of policy-wise units held by policyholders and fund-wise NAV on a quarterly basis.
Q22.
What is the applicable NAV for applications received after Cut-off Time (3.00pm) on a business day?

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 of the immediate next business day

Discuss
Answer: (b).The closing NAV of the next business day Explanation:For applications received after Cut-off Time (3.00 pm) on a business day, the applicable NAV would be the closing NAV of the next business day.
Q23.
What does the insurer need to reconcile on a day-to-day basis for Unit-linked business?

a.

Premium received with the value of all segregated funds

b.

Premium received with benefits paid

c.

Premium received with charges deducted

d.

Premium received with policyholder expectations

Discuss
Answer: (a).Premium received with the value of all segregated funds Explanation:Every insurer doing Unit-linked business shall reconcile, through the system, the premium received (Net of charges and benefits paid) under each product (Unique Identification Number- UIN) with the value of all the segregated funds (Segregated Fund Identification Number-SFIN) net of fund management charges, held under a single UIN, on a day-to-day basis.
Q24.
When does Maturity date of a bond occur?

a.

At the time of issue

b.

After the bondholder receives interest payments

c.

When the principal amount is payable by the borrower to the bondholder

d.

On the date of purchase

Discuss
Answer: (c).When the principal amount is payable by the borrower to the bondholder Explanation:Maturity date refers to the date when the principal amount of borrowings is payable by the borrower to the bondholder.
Q25.
What is the characteristic of Money Market Investments in terms of maturity?

a.

Maturity of more than one year

b.

Maturity of exactly one year

c.

Maturity of less than one year

d.

No fixed maturity

Discuss
Answer: (c).Maturity of less than one year Explanation:Money Market Investments are debt instruments with a maturity of less than one year at the time of issue, including Treasury Bills, Commercial papers, and Certificate of Deposits.
Q26.
How are Mutual Fund Investment schemes broadly classified?

a.

Profit and non-profit schemes

b.

Equity and hybrid schemes

c.

Short-term and long-term schemes

d.

Active and passive investment schemes

Discuss
Answer: (b).Equity and hybrid schemes Explanation:Mutual fund Investment schemes are broadly classified into Equity Schemes, Debt Schemes, and Balanced funds, among others.
Q27.
What is the significance of Real Estate investment?

a.

Provides steady income with low risk

b.

Draws tremendous attention of investors

c.

Has a short maturity period

d.

Is mainly focused on agricultural land

Discuss
Answer: (b).Draws tremendous attention of investors Explanation:Real estate investment has drawn the tremendous attention of investors due to its good rate of return on investment.
Q28.
What is the primary purpose of Financial Derivatives?

a.

Providing steady income

b.

Speculative purposes

c.

Minimizing return on investment

d.

Offering low-risk investment

Discuss
Answer: (b).Speculative purposes Explanation:Financial Derivatives, such as Options and Futures, are used for hedging risks as well as speculative purposes.
Q29.
Which of the following is considered a non-marketable financial asset?

a.

Treasury Bills

b.

Company deposits

c.

Commercial papers

d.

Mutual Fund Investments

Discuss
Answer: (b).Company deposits Explanation:Non-marketable financial assets include forms like bank deposits, post office deposits, company deposits, and provident fund deposits.
Q30.
How is the rate of return on an investment calculated for a period?

a.

[Annual income + Price at Beginning] / Price at End

b.

[Annual income + (Price at End - Price at Beginning)] / Price at Beginning

c.

[Annual income - (Price at End - Price at Beginning)] / Price at End

d.

[Annual income - Price at Beginning] / Price at End

Discuss
Answer: (b).[Annual income + (Price at End - Price at Beginning)] / Price at Beginning Explanation:The rate of return on an investment for a period is calculated using the formula: Rate of Return=Annual income+(Price at End−Price at Beginning)Price at BeginningRate of Return=Price at BeginningAnnual income+(Price at End−Price at Beginning)​
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