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 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.
Q22.
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.
Q23.
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.
Q24.
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.
Q25.
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.
Q26.
What gets more importance and value in the economy as the country's financial markets advance and integrate internationally?

a.

Real assets

b.

Government securities

c.

Financial assets

d.

Mutual Fund Investment

Discuss
Answer: (c).Financial assets Explanation:Financial assets get more importance and value in the economy as the country's financial markets advance and integrate internationally.
Q27.
Why is it essential for insurance companies to understand the characteristics of various investment alternatives?

a.

To compete in the insurance market

b.

To comply with international regulations

c.

Due to rapid development and integration of financial markets

d.

To focus on real asset investments

Discuss
Answer: (c).Due to rapid development and integration of financial markets Explanation:Insurance companies need to understand the characteristics of various investment alternatives due to the rapid development and integration of financial markets, making them significant partners in these markets.
Q28.
Why are time and risk considered key factors in investment decisions?

a.

They determine the market value of investments

b.

They influence systematic analysis and careful planning

c.

They impact the classification of bonds and debentures

d.

They are characteristics of different investment avenues

Discuss
Answer: (b).They influence systematic analysis and careful planning Explanation:Time and risk are considered key factors in investment decisions as they influence systematic analysis, careful planning, and prudent investment decisions.
Q29.
What positive feature do Preference Shares have?

a.

Unlimited voting rights

b.

Fixed rate of return and redeemable after a fixed period

c.

Guaranteed dividend payments

d.

High market liquidity

Discuss
Answer: (b).Fixed rate of return and redeemable after a fixed period Explanation:Preference shares have the positive feature of bonds, including a fixed rate of return and redeemability after a fixed period, along with voting rights.
Q30.
What does Par Value refer to in the context of bonds?

a.

Market value of the bond

b.

The value of the bond at the time of issue

c.

The promised face value of the bond at maturity

d.

The interest payable to the bondholder

Discuss
Answer: (c).The promised face value of the bond at maturity Explanation:Par Value refers to the face value of the bond and the amount the issuer promises to pay at the time of maturity.
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