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 |
| d) Anti-selection |
| 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. |
| a) True |
| b) 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. |
| a) 10% |
| b) 15% |
| c) 20% |
| d) 25% |