IC26 Mock Test Sample 9
The special instruction register records important customer requests and critical policy-related instructions, so correct answer is 1 and 3. Cash management principles for solvency margin are profitability, liquidity, and safety (All 1,2,3). Term insurance incorrect statements: 1 and 3 are incorrect. Accounting policy areas include investments, reserves, and depreciation (All 1,2,3). Micro insurance term: 3 to 5 years min–max not correct option; correct is 5–15 years (as per option closest: 5–15 years). “Goods not entered” is Omission error. Gross Value Added affected by 2 and 3. NPA classification is 90 days overdue. Capital receipts exception: Only 1. Flexible budget difference: Option 1 correct. Layering stage: hiding origin of funds. Investment committee ensures prudential norms compliance. AML audit checks policy compliance. Assets-liabilities-capital: all assets = liabilities + capital. Endowment advantage: protection + savings. ULIP unit fund: unit capital + premium. Secondary market: share trading. Section 115B: tax on life insurance profits. Physical verification: reconciliation with books.
1. The purpose of special instruction register maintained at branch offices of insurance companies is to _______.
a) note the special requests as received from customers
b) calculate the commissions accurately
c) note important information regarding staff
d) both 1 and 2 are correct
e) both 1 and 3 are correct
2. Which are the basic principles of cash management which insurers need to follow to determine the solvency margin?
a) Both 1 and 2
b) Both 1 and 3
c) Both 2 and 3
d) Only 3
e) All 1, 2 and 3
3. With respect to a Term Insurance policy, which of the following statement(s) is/are INCORRECT?
a) 1 and 3 are INCORRECT
b) 2 and 4 are INCORRECT
c) 3 and 4 are INCORRECT
d) 1, 2 and 3 are INCORRECT
e) All 1, 2, 3 and 4 are INCORRECT
4. Areas in which different accounting policies can be adopted include -
a) Only 1
b) Only 2
c) Both 1 and 2
d) Both 2 and 3
e) All 1, 2 and 3
5. Monu has decided to apply for an insurance policy under Micro insurance plans. Minimum and maximum term is:
a) 5–15 years
b) 5–10 years
c) 3–5 years
d) 3–10 years
e) 2–8 years
6. What type of error is this - “Goods returned by Meeta worth Rs 4000 not entered”?
a) Compounding
b) Omission
c) Commission
d) Prime entry
e) Casting
7. From the listed options below which factor affects the Gross Value Added?
a) Only 1
b) Only 2
c) Only 3
d) Both 2 and 3
e) All 1, 2 and 3
8. When is an asset classified as a non-performing asset?
a) 30 days overdue
b) 60 days overdue
c) 90 days overdue
d) 180 days overdue
e) 365 days overdue
9. Capital Receipts – which statement is NOT correct?
a) Both 1 and 3
b) Both 2 and 3
c) Only 1
d) Only 2
e) Only 3
10. Difference between fixed budget and flexible budget is:
a) Option 1
b) Option 2
c) Option 3
d) Both 1 and 2
e) Both 2 and 3
11. Layering stage of money laundering is:
a) Hiding origin of funds
b) Removing clean money from system
c) Provision of apparent legitimacy
d) Physical disposal of cash
e) Separation of proceeds from source
12. Main function of Investment Committee (IRDA) is:
a) Approving investment policy
b) Observing investment activities
c) Ensuring good returns for policyholders
d) Accounting for investments
e) Taking investment decisions within norms
13. Internal audit departments must verify AML/CFT compliance regarding:
a) Customer satisfaction
b) Compliance with policies and controls
c) Marketing effectiveness
d) Sales revenue
e) Employee productivity
14. Relationship between assets, liabilities and capital:
a) Assets = Liabilities + Capital
b) Liabilities > Assets
c) Capital is expense
d) Liabilities = what entity owns
e) Assets only relate to capital
15. Advantage of Endowment plan:
a) Retirement cover only
b) Protection + savings
c) Short premium payment
d) Highest sum assured
e) Cheapest insurance
16. Unit linked policies premium component:
a) Non-unit fund
b) Premium allocation charges
c) Unit fund
d) Unit capital
e) Premium deposit
17. Direct expense in ULIP:
a) Salaries
b) Rent
c) Fund management expenses
d) Commission
e) Legal charges
18. Share trading after allotment occurs in:
a) Primary market
b) Secondary market
c) Money market
d) Banking market
e) Insurance market
19. Purpose of Section 115B:
a) Life insurance profit computation
b) TDS adjustment
c) TDS exemption
d) Tax on life insurance profits
e) None
20. Purpose of physical verification:
a) Original cost determination
b) Obsolete valuation
c) Reconciliation with books
d) Depreciation calculation
e) Officer certification
