Reinsurance Accounting MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Reinsurance Accounting, a fundamental topic in the field of IC85 Reinsurance Management. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Reinsurance Accounting 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 Reinsurance Accounting mcq questions that explore various aspects of Reinsurance Accounting problems. Each MCQ is crafted to challenge your understanding of Reinsurance Accounting principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC85 Reinsurance Management tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Reinsurance Accounting MCQs are your pathway to success in mastering this essential IC85 Reinsurance Management topic.

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Reinsurance Accounting MCQs | Page 8 of 16

Discover more Topics under IC85 Reinsurance Management

Q71.
Which act governs the law and regulation relating to the use of foreign exchange in insurance and reinsurance transactions in India?

a.

Insurance Act, 1938

b.

Foreign Exchange Management Act, 2000

c.

Reinsurance Regulation Act, 1999

d.

Foreign Investment Promotion Act, 2010

Discuss
Answer: (b).Foreign Exchange Management Act, 2000 Explanation:The Foreign Exchange Management Act, 2000 governs the law and regulation related to the use of foreign exchange in insurance and reinsurance transactions in India.
Q72.
According to the Foreign Exchange Management Act, can a person resident in India take any general or life insurance policy issued by an insurer outside India?

a.

Yes, without any restrictions

b.

No, it is strictly prohibited

c.

Yes, with permission from the Reserve Bank

d.

Yes, with permission from the Government of India

Discuss
Answer: (c).Yes, with permission from the Reserve Bank Explanation:According to the Foreign Exchange Management Act, a person resident in India cannot take any general or life insurance policy issued by an insurer outside India unless they have obtained permission from the Reserve Bank of India.
Q73.
Who grants permission to GIC Re, the national reinsurer of India, for arranging remittances of foreign exchange in respect of their reinsurance arrangements?

a.

Government of India

b.

Insurance Regulatory and Development Authority of India (IRDAI)

c.

Reserve Bank of India (RBI)

d.

Foreign Exchange Management Authority (FEMA)

Discuss
Answer: (c).Reserve Bank of India (RBI) Explanation:Permission for arranging remittances of foreign exchange in respect of reinsurance arrangements is granted to GIC Re by the Reserve Bank of India, which acts as an authorized dealer.
Q74.
How do insurers in India obtain permission to remit foreign exchange for their reinsurance transactions?

a.

They submit applications directly to the Reserve Bank of India

b.

They seek approval from the Government of India

c.

They obtain permission from the Insurance Regulatory and Development Authority of India

d.

They submit applications to the respective banks supported by original documentary evidence

Discuss
Answer: (d).They submit applications to the respective banks supported by original documentary evidence Explanation:Insurers in India obtain permission to remit foreign exchange for their reinsurance transactions by submitting applications to the respective banks, supported by original documentary evidence in specified forms.
Q75.
Which entities are permitted by the Reserve Bank of India to maintain foreign currency accounts in foreign countries for facilitating general insurance business undertaken abroad?

a.

Government-owned insurers only

b.

Private insurers only

c.

National Re and licensed insurers

d.

Reinsurers operating in multiple countries

Discuss
Answer: (c).National Re and licensed insurers Explanation:National Re (GIC Re) and licensed insurers in India are permitted by the Reserve Bank of India to maintain foreign currency accounts in foreign countries to facilitate general insurance business undertaken in those countries.
Q76.
What type of payments can be received into foreign currency accounts by insurers in India?

a.

Payments from residents

b.

Payments from non-residents

c.

Payments from foreign insurers only

d.

Payments from domestic insurers only

Discuss
Answer: (b).Payments from non-residents Explanation:Insurers in India are permitted to receive into foreign currency accounts payments due to them from non-residents.
Q77.
Which liabilities can be paid out of foreign currency accounts by insurers in India?

a.

Claims payable to residents

b.

Claims payable to non-residents

c.

Claims payable to domestic insurers

d.

Claims payable to foreign insurers only

Discuss
Answer: (b).Claims payable to non-residents Explanation:Insurers in India can make payments out of their foreign currency accounts towards their liabilities, such as claims payable to non-residents and due to non-resident insurers on account of reinsurance arrangements.
Q78.
Without requiring permission, which types of claims can be settled by insurers in India?

a.

Claims from domestic customers only

b.

Claims from overseas customers only

c.

Claims related to product liability and software errors and omissions

d.

Claims related to reinsurance arrangements

Discuss
Answer: (c).Claims related to product liability and software errors and omissions Explanation:Insurers in India are allowed to settle potential claims from overseas customers and vendors for product liability and software errors and omissions without requiring permission.
Q79.
Which statements are required to be submitted periodically to the Reserve Bank of India by insurers in India?

a.

Monthly statements of foreign currency accounts maintained abroad

b.

Monthly statements of remittances made and remittances received

c.

Quarterly statements of foreign currency accounts maintained abroad

d.

Quarterly statements of remittances made and remittances received

Discuss
Answer: (c).Quarterly statements of foreign currency accounts maintained abroad Explanation:Insurers in India are required to submit quarterly statements of foreign currency accounts maintained abroad to the Reserve Bank of India.
Q80.
Which statement is required to be submitted annually to the Reserve Bank of India by insurers in India?

a.

Statement of reinsurance business done with non-residents

b.

Statement of domestic insurance business

c.

Statement of claims settled

d.

Statement of premium collected

Discuss
Answer: (a).Statement of reinsurance business done with non-residents Explanation:Insurers in India are required to submit an annual statement giving particulars of reinsurance business done with non-residents to the Reserve Bank of India.
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