Question 1

. &#8230;&#8230;&#8230;&#8230; is shown under Schedule 15.&#10;A)Interest earned&#10;B)Profit&#10;C)Interest Expended&#10;D)Appropriations

Accepted Answer

Interest Expended is shown under Schedule 15, as it relates to the interest expenses a company incurs.

Question 2

Acceptance, endorsements and other obligations come under the head&#8230;&#10;A)Provisions and Contingencies&#10;B)Contingent liabilities&#10;C)Deposits&#10;D)Borrowings

Accepted Answer

Acceptance, endorsements, and other obligations are classified as contingent liabilities because they represent potential future outflows of resources that depend on the occurrence or non-occurrence of one or more uncertain future events.

Question 3

Assets are NPAs for a period not exceeding 12 months are called &#8230;&#8230;&#8230;&#8230;.&#10;A)Standard Assets&#10;B)Substandard Assets&#10;C)Doubtful Assets&#10;D)Loss Assets

Accepted Answer

Substandard assets are those assets that have been classified as NPAs for a period not exceeding 12 months.

Question 4

Assets are NPAs for a period exceeding 12 months are called &#8230;&#8230;&#8230;&#8230;.&#10;A)Standard Assets&#10;B)Substandard Assets&#10;C)Doubtful Assets&#10;D)Loss Assets

Accepted Answer

Doubtful Assets are those assets that have remained NPAs for a period exceeding 12 months.

Question 5

. &#8230;&#8230;&#8230;is a form of agreement between two parties in which one party agrees to make good for loss of another.&#10;A)Contract&#10;B)Insurance&#10;C)Banking&#10;D)Mutual fund

Accepted Answer

Insurance is the correct answer because it is a contract (policy) in which an individual or entity receives financial protection or reimbursement against losses from an insurance company. The company pools clients' risks to make payments more affordable for the insured.

Question 6

The agreement of insurance is called as &#8230;&#8230;&#8230;..&#10;A)Policy&#10;B)Premium&#10;C)Annuity&#10;D)None of these

Accepted Answer

A policy is the correct term for an agreement of insurance, outlining the terms and conditions of the coverage.

Question 7

The consideration in insurance for covering the risk is called &#8230;&#8230;&#8230;&#8230;.&#10;A)Claim&#10;B)Premium&#10;C)Annuity&#10;D)None of these

Accepted Answer

The consideration in insurance for covering the risk is called premium. This is the amount the policyholder pays to the insurance company in exchange for risk coverage.

Question 8

. &#8230;&#8230;&#8230;&#8230;&#8230;is the party who undertakes the risk in insurance.&#10;A)Insurer&#10;B)Assurer&#10;C)Underwriter&#10;D)All of these

Accepted Answer

All of these terms refer to the party in an insurance contract who undertakes the risk. The insurer, assurer, and underwriter are all entities that provide insurance coverage, assuming the risk from the policyholder in exchange for premiums.

Question 9

The party whose risk is covered in insurance is known as &#8230;&#8230;&#8230;.&#10;A)Insurer&#10;B)Insured&#10;C)Underwriter&#10;D)None of these

Accepted Answer

The party whose risk is covered in insurance is known as the insured. This is the individual or entity that holds the insurance policy and is protected against specific risks under the terms of the insurance agreement.

Question 10

In &#8230;&#8230;&#8230;&#8230;., the insurer agrees to pay a certain sum of money to the policyholder either on his death or a certain age, which ever is less.&#10;A)Fire Insurance&#10;B)Marine Insurance&#10;C)Burglary Insurance&#10;D)Life Insurance

Accepted Answer

Life Insurance is the type of insurance where the insurer agrees to pay a certain sum of money to the policyholder either on his death or upon reaching a certain age, whichever comes first.

Question 11

General Insurance includes &#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)Fire Insurance&#10;B)Marine Insurance&#10;C)Burglary Insurance&#10;D)All of these

Accepted Answer

The answer of General Insurance includes &#8230;&#8230;&#8230;&#8230;&#8230;.&#10;A)Fire Insurance&#10;B)Marine Insurance&#10;C)Burglary Insurance&#10;D)All...

Question 12

Insurance business in India is regulated by &#8230;&#8230;&#8230;&#8230;. A. LIC B. IRDA C. RBI D. SEBI 193. Under &#8230;&#8230;&#8230;&#8230;., the sum assured is given to the beneficiary only on death of policyholder.&#10;A)Whole Life Policy&#10;B)Endowment Policy&#10;C)Annuity&#10;D)None of these

Accepted Answer

The answer of Insurance business in India is regulated by...

Question 13

. &#8230;&#8230;&#8230;..is the amount payable to the insured on the happening of event.&#10;A)Premium&#10;B)Annuity&#10;C)Claim&#10;D)Policy

Accepted Answer

The answer of . &#8230;&#8230;&#8230;..is the amount payable to the...

Question 14

An annual payment which an insurer guarantees to pay for lump sum money received in the beginning is called &#8230;&#8230;&#8230;&#8230;.&#10;A)Premium&#10;B)Annuity&#10;C)Claim&#10;D)Policy

Accepted Answer

The answer of An annual payment which an insurer guarantees...

Question 15

The amount given to the policyholder due to his inability of paying further premium is called &#8230;&#8230;&#8230;&#8230;..&#10;A)Annuity&#10;B)Bonus&#10;C)Surrender value&#10;D)Claim

Accepted Answer

The answer of The amount given to the policyholder due...

Question 16

. &#8230;&#8230;&#8230;&#8230;..is an agreement between two insurance companies whereby one transfers a part of risk to other.&#10;A)Reinsurance&#10;B)Sub insurance&#10;C)Shared Policy&#10;D)None of these

Accepted Answer

The answer of . &#8230;&#8230;&#8230;&#8230;..is an agreement between two insurance...

Question 17

Revenue Account is also called &#8230;&#8230;&#8230;&#8230;.&#10;A)Shareholders' Account&#10;B)Policyholders' Account&#10;C)Creditors' Account&#10;D)None of these

Accepted Answer

The answer of Revenue Account is also called &#8230;&#8230;&#8230;&#8230;.&#10;A)Shareholders' Account&#10;B)Policyholders'...

Question 18

Valuation balance sheet is prepared by &#8230;&#8230;&#8230;&#8230;&#8230;business.&#10;A)Fire Insurance&#10;B)Marine Insurance&#10;C)Life Insurance&#10;D)All of these

Accepted Answer

The answer of Valuation balance sheet is prepared by &#8230;&#8230;&#8230;&#8230;&#8230;business.&#10;A)Fire...

Question 19

The commission earned by insurance companies from others for giving them business under reinsurance is called &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Commission on reinsurance accepted&#10;B)Agents' commission&#10;C)Commission on reinsurance ceded&#10;D)None of these

Accepted Answer

The answer of The commission earned by insurance companies from...

Question 20

The commission given by insurance companies to others for receiving business under reinsurance is called &#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Commission on reinsurance accepted&#10;B)Agents' commission&#10;C)Commission on reinsurance ceded&#10;D)None of these

Accepted Answer

The answer of The commission given by insurance companies to...

Question 21

Profit and Loss Account of General Insurance Companies are prepared in &#8230;&#8230;&#8230;&#8230;&#10;A)Form A?PL&#10;B)Form B?RA&#10;C)Form B?PL&#10;D)Form B?BS

Accepted Answer

The answer of Profit and Loss Account of General Insurance...

Question 22

The principle of subrogation is applicable to&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Fire Insurance&#10;B)Marine Insurance&#10;C)Burglary Insurance&#10;D)All of these

Accepted Answer

The answer of The principle of subrogation is applicable to&#8230;&#8230;&#8230;&#8230;&#8230;&#10;A)Fire...

Question 23

Opening capital is ascertained by preparing:&#10;A)Cash book&#10;B)Creditors A/c&#10;C)Debtors A/c&#10;D)Opening statement of affairs.

Accepted Answer

The answer of Opening capital is ascertained by preparing:&#10;A)Cash book&#10;B)Creditors...

Question 24

A Single entry system it:&#10;A)Complete and scientific system&#10;B)Incomplete and unscientific&#10;C)Incomplete and scientific&#10;D)Complete and unscientific

Accepted Answer

The answer of A Single entry system it:&#10;A)Complete and scientific...

Deck 18: Insurance and General Insurance Companies: Understanding Terms and Concepts