IC26 LIFE INSURANCE FINANCE - 09
| Q1.What will be the effect on the Balance Sheet of the following transaction: The proprietor pays the outstanding business rent of Rs 6500 from his own pocket. |
| Both liabilities and assets remain unchanged |
| Liabilities are increased while assets are decreased |
| Assets are increased while liabilities are decreased |
| Both liabilities and assets are increased. |
| Both liabilities and assets are decreased |
| Q2.What is Net Premium also known as? |
| Cover premium |
| Add on premium |
| Core premium |
| Pure premium |
| Discounted premium |
| Q3.From the below options, which one is 'Application of Funds'? 1. Income from investments 2. Funds from operations 3. Funds lost in operations |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| Both 2 and 3 |
| Q4.Which primary books of accounts is/are used for reconciliation, classification, and posting to control accounts? 1. Premium cash book 2. Register of claims 3. Deposit cash book |
| Both 1 and 2 |
| Both 1 and 3 |
| Both 2 and 3 |
| Only 2 |
| Only 3 |
| Q5.Which of these amounts collected by an insurance company will be recorded in the ' Deposit Adjustment Book ' ? 1. Amounts received towards new policy 2. Amounts received towards the existing policy 3. Amount received towards renewal premium from policyholder |
| Only 1 |
| Only 2 |
| Only 3 |
| Both 1 and 2 |
| All 1, 2 and 3 |
| Q6.According to the Companies Act 2013, the books of accounts of a company are to kept at __. |
| Corporate office |
| Head office |
| Registered office |
| All branch offices |
| State capital offices |
| Q7.The carrying value of a machine is Rs 90000. It is revalued at Rs 98000. On the previous revaluation, its value was decreased by Rs 7000. Show the accounting adjustments for the revaluation. |
| Credit Profit or Loss – Rs 1000, Credit Revaluation Reserve – Rs 7000 |
| Credit Profit or Loss – Rs 7000, Debit Revaluation Reserve – Rs 1000 |
| Credit Profit or Loss – Rs 8000, Credit Revaluation Reserve – Rs 1000 |
| Debit Profit or Loss – Rs 1000, Credit Revaluation Reserve – Rs 7000 |
| Credit Profit or Loss – Rs 7000, Credit Revaluation Reserve – Rs 1000 |
| Q8.The solvency of an insurance company is determined by ____. 1. It has adequate capital as security 2. It has adequate reserves to meet obligations 3. The Financial strength of the company |
| Only 2 |
| Both 1 and 2 |
| Both 2 and 3 |
| Both 1 and 3 |
| All 1, 2 and 3 |
| Q9.The Pradhan Mantri Jeevan Jyoti Bima Yojana has the following feature(s) - 1. The Risk coverage is Rs. 2 lakhs in case of death 2. The maximum entry age in this scheme is 50 years 3. A Person even without a bank account can apply for this scheme |
| Both 1 and 2 |
| Both 1 and 3 |
| Both 2 and 3 |
| Only 1 |
| All 1,2 and 3 |
| Q10.___ benefit is not available in a health insurance policy. |
| Hospital cash benefit |
| Fund value maturity |
| Death benefit |
| Major surgical benefit |
| Domiciliary treatment benefit |