IC26 Mock Test Sample 16
These questions cover key concepts in insurance, accounting, taxation, and financial management. They highlight areas such as types of premiums, fund flow classification, accounting books, and regulatory requirements under the Companies Act. Important insurance topics include solvency, PMJJBY features, health policy exclusions, and bonus types. Investment norms, employee perquisite valuation, and pension plan features are also addressed. Operational aspects like claims netting, liquidity risk, and production budgeting are included. Risk management strategies, trial balance error detection, and Adam Smith’s taxation principles emphasize financial discipline, accuracy, and fairness, providing a comprehensive understanding of financial and insurance practices.
1. What is Net Premium also known as?
a) Cover premium
b) Add on premium
c) Core premium
d) Pure premium
2. From the below options, which one is 'Application of Funds'?
a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
3. Which primary books of accounts is/are used for reconciliation, classification and posting to control accounts?
a) Both 1 and 2
b) Both 1 and 3
c) Both 2 and 3
d) Only 2
4. Which of these amounts collected by an insurance company will be recorded in the 'Deposit Adjustment Book'?
a) Only 1
b) Only 2
c) Only 3
d) Both 1 and 2
5. According to the Companies Act 2013, the books of accounts of a company are to be kept at ________.
a) Corporate office
b) Head office
c) Registered office
d) All branch offices
6. The solvency of an insurance company is determined by _______.
a) Only 2
b) Both 1 and 2
c) Both 2 and 3
d) Both 1 and 3
7. The Pradhan Mantri Jeevan Jyoti Bima Yojana has the following feature(s):
a) Both 1 and 2
b) Both 1 and 3
c) Both 2 and 3
d) Only 1
8. ______ benefit is not available in a health insurance policy.
a) Hospital cash benefit
b) Fund value maturity
c) Death benefit
d) Major surgical benefit
9. Which type of bonus is added to the sum assured and paid at the time of claim?
a) Only 1
b) Only 2
c) Only 3
d) Only 1 and 2
10. With respect to investment in housing and infrastructure as per IRDAI regulations, which is correct?
a) Not less than 10% of the fund
b) Not less than 15% of the fund
c) Not less than 25% of the fund
d) Not less than 30% of the fund
11. What is the valuation of perquisite for rent-free accommodation (salary Rs. 8,60,500)?
a) Rs. 1,72,100
b) Rs. 86,050
c) Rs. 15,000
d) Rs. 1,29,075
12. The prime feature of unit linked pension plan is:
a) Short term benefit after maturity
b) Short term benefit after policy inception
c) Single large payment on maturity
d) Long term benefit (annuity) after maturity
13. Pick a feature of whole life insurance plan:
a) Premiums paid only for few years
b) No protection for dependents
c) Excellent security for old age
d) Protection for dependents is dominant
14. Under 'Netting of Claims' method, which items can be netted?
a) Only 1
b) Only 2
c) Only 3
d) Only 2 and 3
15. ______ can result in complete failure as well as delay in payments.
a) Arbitrage Risk
b) Market Risk
c) Capital Risk
d) Credit Risk
16. Under Jeevan Akshay Policy, minimum entry age is:
a) 21
b) 30
c) 50
d) 65
17. Production Budget (Sales 65700, Opening 18400, Closing 21777):
a) 62323
b) 105877
c) 69077
d) 54717
18. To avoid market risks, what should life insurer do?
a) Separate insurance from investment
b) Reshuffle shrinking assets
c) Recover assets from debtors
d) Diversify investments
19. While preparing Trial Balance, which error can be highlighted?
a) Calculation
b) Posting
c) Principle
d) Omission
20. According to Adam Smith, "equitable" taxation means:
a) Equality and social justice
b) Consistency and stability
c) Predictability
d) Low cost of administration
