IC83 GROUP INSURANCE - 11
|Q1.Which of the following statement best describes interest costs?
|a) It is the cost that arises because PVO increase due to the service rendered by the employees in the current period
|b) This is arrived at by multiplying the discount rate as determined at the start of the period by 'PVO' at the beginning of the period
|c) It comprises interest, dividends, and other revenue derived from the plan assets and any realized or unrealized gain on the plan assets
|d) It is the amount which an asset could be exchanged or a liability settled between knowledgeable parties
|Q2.Which of the following is a disadvantage of the free cover limit provided under group insurance?
|a) Cost reduction
|b) Saves time
|c) Spread of the mortality risk
|Q3.Accounting standard 15(revised 2005) is not applicable to which of the following firms?
|a) Listed companies on any stock exchange in India
|b) Companies having turnover of more than 50 crores
|c) Companies employing less than 50 employees
|d) Banks/FIs/Insurance companies
|Q4.What is the annual premium amount that has to be paid by an individual under Pradhan Mantri Suraksha Yojana(PMSSY)?
|a) Rs 10
|b) Rs 12
|c) Rs 500
|d) Rs 5000
|Q5.Which of the following methods are commonly used to set the contributions for defined benefit pension schemes that are funded in advance by regular contributions?
|a) Prospective methods
|b) Accrued benefit methods
|c) Both a and b
|d) None of these
|Q6.In light of the concentration of risk in a group, if it is not widely spread, the ____ provides the insurer additional protection on the risks within its retention and also limits the cost of multiple claims as a result of a single incident, such as natural disaster or an accident.
|a) Surplus arrangement
|b) Catastrophe cover
|c) Quota Share Arrangement
|d) Stop loss Reinsurance
|Q7.Other Long term Employee Benefits include employee benefits other than Short-term employee benefits, post-employment benefits, and termination benefits. Say True or False.
|Q8.Insurance companies that sell reinsurance refer to the business as______.
|a) Proportional Reinsurance
|b) Facultative Reinsurance
|c) Treaty Reinsurance
|d) Assumed Reinsurance
|Q9.Which of the following statements about gratuity is incorrect?
|a) An employer may offer gratuity out of his own funds
|b) An employer can approach a life insurer in order to purchase a group gratuity plan
|c) In case the employer chooses a life insurer, he has to pay annual contributions as decided by the insurer.
|d) None of the above
|Q10.The sum of all the rider premium attached to the pension product shall not exceed___ of the premium paid for the pension policy.
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