Life insurance finance — valuation, surplus, solvency, accounting and the financial management of a life office.
These are 5 of the 533 IC-26 questions in Certena, taken from across the paper. Every answer key has been checked against a source — a printed answer key, a textbook extract, or arithmetic — not guessed. Reveal the answer and the explanation below each question. No sign-up needed.
Answer: E. All 1,2 and 3
Money laundering occurs only when anyone is handling the proceeds of Tax evasion, Corruption and Smuggling. It’s an act of changing the appearance of money coming from Tax evasion, Corruption and Smuggling, from black to white.
Answer: B. Endowment Policy
Endowment insurance plan is undoubtedly the most popular form of life insurance plan at the present time. This type of policy is really a combination of life insurance and investment. Under this class of contract, the sum assured is payable at the expiration of a fixed term of years or at death, shall that occur previously. This plan is an ideal combination of both family protection and the savings elements and answers most of the problems of the insuring public, especially persons with families.
Answer: D. Endowment Policy
In Endowment policies, insurance cover is provided for fixed period and the sum assured is paid on the expiry of such period or death whichever is earlier and the payment of premiums stops when the policy becomes a claim.
Answer: B. Mortality charges
Net premium: net premium is also known as ‘pure premium’. Net premium includes : mortality charges and interest Net premium does not take into account: expenses of management the possibility that the rates of mortality assumed will not be experienced in practice, the possibility that the rates of interest earned will be less than those assumed and the need for providing profits for the with- profits policyholders
Answer: C. Total payment of rupees 200000
The cash book is a book of prime entry of a special kind as it is also a part of the ledger system. The cash book is meant to record all cash transactions, whatever may be their nature. The receipts side of the cash book is used to record entries which debit the cash account or the bank account; The payments side is used to record entries which credit either the cash account or the bank account;
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