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 9 of 16

Discover more Topics under IC 89 Management Accounting

Q81.
How often does the Board review the Investment policy and its implementation according to Regulation 13 (B-v)?

a.

Annually

b.

Quarterly

c.

Half-yearly

d.

Biennially

Discuss
Answer: (c).Half-yearly Explanation:The Board shall review the Investment policy and its implementation on a half-yearly basis or at such short intervals as it may decide, as per Regulation 13 (B-v).
Q82.
What responsibility does the Board have regarding investments?

a.

To directly manage all investment functions

b.

To lay down clear norms for investing in 'Other Investments'

c.

To outsource all investment functions to ensure efficiency

d.

To perform internal audits of investment functions

Discuss
Answer: (b).To lay down clear norms for investing in 'Other Investments' Explanation:The Board shall lay down clear norms for investing in 'Other Investments' as specified under sections 27A(2) and 27B(3) of the Insurance Act 1938 by the Investment Committee.
Q83.
What is the requirement mentioned in Regulation 7 (c) of IRDA (Registration of Indian Insurance Companies) Regulations 2000 related to internal control of investment functions?

a.

To outsource all investment functions for efficiency

b.

To segregate functions and operations of Front, Mid, and Back office

c.

To perform internal audits of investment functions

d.

To invest in equity shares and debt instruments

Discuss
Answer: (b).To segregate functions and operations of Front, Mid, and Back office Explanation:Regulation 7 (c) of IRDA (Registration of Indian Insurance Companies) Regulations 2000 requires insurers to ensure proper internal control of investment functions and operations by clearly segregating the functions and operations of Front, Mid, and Back office.
Q84.
What is the significance of the primary data server for investment management?

a.

It should be outsourced to ensure efficiency

b.

It should be located outside the country for security reasons

c.

It should remain within the country for proper internal control

d.

None of the above

Discuss
Answer: (c).It should remain within the country for proper internal control Explanation:The primary data server of the computer application used for investment management shall remain within the country to ensure proper internal control.
Q85.
When is the applicable NAV determined for applications received with local cheques, cash, or demand drafts?

a.

The closing NAV of the same day for applications received before Cut-off Time (3.00pm)

b.

The closing NAV of the next business day for applications received after Cut-off Time (3.00pm)

c.

The closing NAV of the day on which the cheque or demand draft is realized for outstation cheques or demand drafts

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:The applicable NAV for applications received with local cheques, cash, or demand drafts depends on whether they are received before or after Cut-off Time (3.00pm) on a business day. For outstation cheques or demand drafts, the closing NAV of the day on which the cheque or demand draft is realized shall be applied.
Q86.
What is the procedure for determining the applicable NAV for applications received on the last business day of the Financial Year?

a.

All applications received on the last business day up to 3 pm processed with NAV of the last business day

b.

Applications received after 3 pm on the last business day fall into the Next Financial Year with NAV of the immediate next business day applicable

c.

The insurer declares NAV for the last business day of a 'Financial year,' even if it is a non-business day

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:For applications received on the last business day of the Financial Year, those received up to 3 pm shall be processed with the NAV of the last business day. Applications received after 3 pm on the last business day fall into the Next Financial Year, and the NAV of the immediate next business day would be applicable. The insurer is required to declare NAV for the last business day of a 'Financial year,' even if it is a non-business day.
Q87.
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.
Q88.
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.
Q89.
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.
Q90.
What is the requirement for applications received with local cheques, cash, or demand drafts after Cut-off Time (3.00 pm) on a business day?

a.

The applicable NAV would be the closing NAV of the same day

b.

The applicable NAV would be the closing NAV of the next business day

c.

The applicable NAV would be the NAV of the last business day of the Financial Year

d.

The applicable NAV would be the NAV of the immediate next business day

Discuss
Answer: (b).The applicable NAV would be the closing NAV of the next business day Explanation:For applications received with local cheques, cash, or demand drafts after Cut-off Time (3.00 pm) on a business day, the applicable NAV would be the closing NAV of the next business day.
Page 9 of 16