Insurance Questions daily proved very useful to all Insurance aspirants or insurance savvy who regularly seek insurance knowledge.
These 20 Insurance GK MCQs are all about Life and about the general insurance sector.
Questions related to Principle and Practice of general Insurance. Insurance accounting and maintaining and managing accounting practices Risk Management and its applicability in the present industry, accounting terminology etc. on Insurance GK.
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Q-1- __________can threaten the very existence of an Insurance company, if they do not put aside enough money to meet future liabilities.
- Catastrophes
- Poor reserving
- Fraudulent claims
- Unexpected claims
Option-2 Poor Reserving
Q-2- As per IRDA(Investment) Regulations 2000, an insurance company can make an investment___________in Central Government securities.
- minimum 5%
- minimum 10%
- minimum 15%
- minimum 20%
Option-4 minimum 20%
Q-3- As per IRDA(Investment) Regulations 2000, an insurance company can make an investment___________in State Government and other guaranteed securities.
- minimum 15%
- minimum 20%
- minimum 25%
- minimum 30%
Option-4 minimum 30%
Q-4- The primary income of an insurer is the __________income direct as well as by way of reinsurance.
- premium
- commission
- return on investment
- miscellaneous receipts as rent
Option-1 Primary income of an insurer is the premium income apart from other incomes as return in investment, miscellaneous receipts as rent etc.
Q-5- On which strategy the Modern Portfolio theory of Investment of Premium by insurance companies are based upon?
- Diversification
- Risk Modelling
- Risk Derivatives
- Financial Modelling
Option-1 Diversification
Q-6- In General insurance accounting, Loans are to be measured at _________ and Premium received in advance, but not related to current accounting year, is disclosed separately under head of __________
- Future Cost; Fixed Liabilities
- Agreed Cost; Fixed Liabilities
- Current Cost; Future Liabilities
- Historical Cost; Current Liabilities
Option-4 Historical Cost; Current Liabilities
Q-7- What is the other name of ‘Triangular method’ of projecting the claims pattern?
- Rate Ladder
- Chain Ladder
- Claims Ladder
- Triangle Ladder
Option-2 Chain Ladder
Q-8- In case of an Insurance accounting of general insurance business,which of the below exception is true
- Segment Reporting applies to all insurers
- Accounting for Investments is not applicable
- Cash Flow Statement to be prepared only under Direct Method
- All of the above
Option-4 All of the above
Q-9- General Accounting must be in line which of the following?
- GAAP Standards Risk
- International Accounting Standard
- IRDA(Investment) Regulations,2000
- Accounting Standards issued by the ICAI
Option-4 Accounting Standards issued by the ICAI
Q-10- In General Insurance accounting, the Catastrophe Reserves are to be compulsory created as prescribed by the IRDA and they are mainly for _______________
- Natural Perils
- Group Business
- Reinsurance Business
- Accounting of Foreign Operations
Option-4 In General Insurance accounting, the Catastrophe Reserves are to be compulsory created as prescribed by the IRDA and they are mainly for Reinsurance Business.