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 5 of 16

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Q41.
What is the specific consideration for an insurance company when dealing with income from Government Securities?

a.

Political stability

b.

Time value of money

c.

Inflation rate

d.

Revenue Income and Capital gains

Discuss
Answer: (d).Revenue Income and Capital gains Explanation:Insurance companies need to specifically consider Revenue Income and Capital gains when dealing with income from Government Securities.
Q42.
What is the purpose of the Insurance Regulatory and Development Authority (Investment) Regulations 2000?

a.

To promote competition among insurance companies

b.

To protect the interests of policyholders' funds and interests

c.

To regulate premium rates

d.

To establish new insurance companies

Discuss
Answer: (b).To protect the interests of policyholders' funds and interests Explanation:The purpose of the Insurance Regulatory and Development Authority (Investment) Regulations 2000 is to protect the interests of policyholders' funds and interests.
Q43.
What is the meaning of "Investment Assets" according to the regulations?

a.

All assets owned by an insurance company

b.

Assets purchased by policyholders

c.

All investments made out of shareholders' funds and policyholders' funds

d.

Assets used for operational purposes

Discuss
Answer: (c).All investments made out of shareholders' funds and policyholders' funds Explanation:"Investment Assets" mean all investments made out of shareholders' funds and policyholders' funds, as specified in the regulations.
Q44.
What does "Money Market Instruments" include according to the regulations?

a.

Long-term bonds

b.

Equity shares of listed companies

c.

Short-term funds with maturity not more than one year

d.

Real estate investments

Discuss
Answer: (c).Short-term funds with maturity not more than one year Explanation:Money Market Instruments comprise short-term funds with maturity not more than one year, including various specified instruments such as Certificate of Deposits, Commercial Paper, Repos, Treasury Bills, and others.
Q45.
What is the significance of the amendments made to the Investment Regulations?

a.

To increase policy premiums

b.

To reduce investment options for insurance companies

c.

To protect the interests of policyholders' funds and interests

d.

To encourage risky investments

Discuss
Answer: (c).To protect the interests of policyholders' funds and interests Explanation:The amendments to the Investment Regulations are made to protect the interests of policyholders' funds and interests, ensuring prudent investment practices by insurance companies.
Q46.
What does Regulation 4 of the IRDA (Investment) (5th Amendment) Regulations 2013 specify for life insurance business?

a.

The premium rates for life insurance policies

b.

The manner of investments for life insurance business

c.

The types of policies offered by life insurers

d.

The maximum sum assured for a life insurance policy

Discuss
Answer: (b).The manner of investments for life insurance business Explanation:Regulation 4 outlines the manner of investments for life insurance business, specifying how insurers carrying on the business of life insurance in India should invest and keep invested their funds.
Q47.
According to Regulation 5, how should insurers carrying on Pension, Annuity, and group Business invest their assets?

a.

Only in government securities

b.

In any manner as per the discretion of the insurer

c.

In a manner specified in the regulation

d.

Exclusively in real estate investments

Discuss
Answer: (c).In a manner specified in the regulation Explanation:Regulation 5 specifies the manner in which insurers carrying on Pension, Annuity, and group Business should invest and keep invested their investment assets, without prejudice to certain provisions of the Insurance Act.
Q48.
What is the requirement for investment in Approved Investment for Unit-Linked Insurance Business as per Regulation 6?

a.

It should be more than 75% of segregated funds

b.

It should be less than 50% of segregated funds

c.

There is no specific requirement for Approved Investment

d.

It should be 100% of segregated funds

Discuss
Answer: (a).It should be more than 75% of segregated funds Explanation:Regulation 6 states that investment in Approved Investment for Unit-Linked Insurance Business should not be more than 75% of such funds in each segregated funds.
Q49.
What does Regulation 7 of the IRDA (Investment) (5th Amendment) Regulations 2013 specify for General Insurers (including Health Insurers)?

a.

Investment in real estate only

b.

The manner of investments for General Insurance Business

c.

No specific regulations for General Insurers

d.

Maximum premium rates for health insurance policies

Discuss
Answer: (b).The manner of investments for General Insurance Business Explanation:Regulation 7 outlines the manner of investments for General Insurers (including Health Insurers), specifying how they should invest and keep invested their investment assets.
Q50.
What is the significance of Regulation 7 of the IRDA (Investment) Regulations?

a.

To regulate the issuance of insurance policies

b.

To specify the maximum sum assured for life insurance policies

c.

To outline the manner of investments for General Insurers

d.

To set premium rates for health insurance policies

Discuss
Answer: (c).To outline the manner of investments for General Insurers Explanation:Regulation 7 specifies the manner of investments for General Insurers, providing guidelines on how they should invest and keep invested their investment assets.
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