IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 06

Que. 1 : Q1) For accounting and determination of value the enterprise should do which of the following?

   1.  a) To account not only for its legal obligation under the formal terms, but also for any other obligation that arises from the enterprise's informal practices

   2.  b) To use Projected Unit Credit Method to measure its obligations and related costs

   3.  c) To recognize immediately actuarial gains and losses in the statement of profit and loss as income or expense

   4.  d) All of the above

Que. 2 : Q2) As per the IRDAI(Investment) (Fifth Amendment) Regulations 2013 every insurer carrying on general insurance business shall invest in Central Government Securities_____________.

   1.  a) Not less than 10%

   2.  b) Not less than 20%

   3.  c) Not less than 30%

   4.  d) Not less than 20%

Que. 3 : Q3) Which represents dividend received on company's investments in shares and if it is shown in Trial Balance is the net dividend amount received by the company?

   1.  a) Interest received

   2.  b) Proposed dividend

   3.  c) Dividends received

   4.  d) None of these

Que. 4 : Q4) The Fire Department of ABC General Insurance Co. Ltd gives the following details for 2009-10: i) Fire claims paid Rs.705 crore ii) Claims on Reinsurance Accepted Rs.144 crore iii) Claims on Reinsurance Ceded Rs.292 crore iv) Claims outstanding as on 01/04/2009 Rs.756 crore v) Claims outstanding as on 31/03/2010 Rs.800 crore. Calculate Claims Incurred Net, which have been shown in the Revenue Account for the year ended 31st March 2010.

   1.  a) 501

   2.  b) 601

   3.  c) 701

   4.  d) 801

Que. 5 : Q5) What means the company which is amalgamated into another company?

   1.  a) Transferor Company

   2.  b) Transferee Company

   3.  

   4.