IC46 GENERAL INSURANCE ACCOUNTS PREPARATION - 07
| Q1.Provision of IBNR/IBNER is based on the advice of |
| a) Management |
| b) Actuary |
| c) Shareholders |
| d) Auditors |
| Q2.Cash flows from investing activities and financing activities will be the same under the direct and indirect methods. Say whether True or False. |
| a) True |
| b) False |
| Q3.What refers to if the whole of the issue has been underwritten by one person, the underwriter is responsible to subscribe for all the shares or debentures that have not been subscribed by the public? |
| a) Partial underwriting |
| b) Market underwriting |
| c) Marked underwriting |
| d) Complete underwriting |
| Q4.What is also referred to as Unexpired Risk? |
| a) Premium income |
| b) Technical Reserves |
| c) Cost incurred |
| d) Practical reserves |
| Q5.How many types of Accounting systems are there? |
| a) One |
| b) Two |
| c) Three |
| d) Four |
| Q6.Similar to quote share, except that the portion of risk retained by the direct insurer is expressed as a fixed monetary amount is referred to as __. |
| a) Quota share |
| b) Surplus share |
| Q7.What refers to obligations of the enterprise arising from the borrowing made by the promoters, shareholders, and past performances, the settlement of which is expected to make use of the enterprises' resources? |
| a) Liabilities |
| b) Assets |
| c) Equity |
| d) Revenue |
| Q 8. What refers to the investments treated as assets held by an insurer for earning income by way of dividends, rent, and interest or for capital appreciation or for other benefits to both policyholders and shareholders? |
| a) Investment accounting |
| b) Reinsurance |
| c) Bancassurance |
| d) Discounting |
| Q 9. Which benefits provide such as gratuity, pension, other retirement benefits, post-employment life insurance, and post-employment medical care? |
| a) Short-term employee benefits |
| b) Other long-term employee benefits |
| c) Post-employment benefits |
| d) None of these |
| Q10.A reinsurance contract under which the reinsured company agree to cede and the reinsurer agrees to assume a particular class or class of Insurance business automatically is referred to as: |
| a) Inward reinsurance |
| b) Retrocession |
| c) Treaty |
| d) None of the above |