IC-46 Compulsory · Associateship General Insurance

General Insurance Accounts Preparation & Regulation of Investment — Mock Tests & Exam Prep

General insurance accounts — revenue accounts, balance sheets, IRDAI financial reporting and the regulation of investments.

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441
Verified questions
100
Questions per exam
2 hrs
Exam duration
60%
Pass mark
30
Credit points

Try IC-46 free — 5 real questions

These are 5 of the 441 IC-46 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.

Question 1
The composition, terms of reference and attendance of the ________ shall not appear under disclosures in Director's report.
  1. AAudit committee
  2. BRisk Management Committee
  3. CInvestment committee
  4. DLower Management Committee for promotional exercise
  5. EPolicy holders protection committee
Show answer & explanation

Answer: D. Lower Management Committee for promotional exercise

The correct answer is d. Lower Management Committee for promotional exercise. The Director's Report typically discloses information about key committees that are significant for governance, compliance, and risk management. Committees like the Audit Committee, Risk Management Committee, and Policy Holders Protection Committee are crucial for regulatory and operational oversight and are usually disclosed. However, a Lower Management Committee for promotional exercises is not typically relevant to governance disclosures in the Director's Report.

Question 2
Which of the following statement(s) is/are TRUE ?
  1. AProportional reinsurance is prohibited in India
  2. BNon- Proportional reinsurance has a potential for additional earnings
  3. CProportional reinsurance can assist improve combined ratio
  4. DBoth 1 and 2 are true
  5. EBoth 2 and 3 are true
Show answer & explanation

Answer: E. Both 2 and 3 are true

Proportional reinsurance is not prohibited in India and apart from other regulations for reinsurance, the only condition is that not more than 10% of reinsurance premium can be placed with one re-insurer & the re-insurer must have at least BBB or equivalent international rating. The ‘Proportional reinsurance’ can assist improve combined ratio and the ‘Non- Proportional reinsurance’ has a potential for additional earnings.

Question 3
In accordance with the Companies Act, a company can buy-back ________________ in any financial year. 1. 25% of the total paid up equity share capital and free reserves 2. 25% of the total paid up equity share capital 3. 25% of the total paid up equity share capital and preference share capital
  1. A1 and 2
  2. B2 and 3
  3. COnly 1
  4. DOnly 2
  5. EOnly 3
Show answer & explanation

Answer: C. Only 1

Sub clause (2) of Section 77A enshrines the conditions for a buy back.

Question 4
Is the statement true - Statutory audit is only concerned with the propriety and validity of the transaction for the purpose and the maximum profitability of the entity.
  1. AIt's correct as statutory audit is a thorough examination of the risk management system
  2. BIt's correct as statutory audit is a thorough examination of the internal control system
  3. CIt's totally correct
  4. DIt's partially correct
  5. EIt's totally wrong
Show answer & explanation

Answer: E. It's totally wrong

The internal audit is mainly concerned for the maximum profitability of the entity through propriety & validity of transaction. The statutory auditors on the other hand is concern with the legality of the business transaction as per statutory requirements.

Question 5
Assist XYZ & Co. Ltd. in identifying the correct calculation of incurred expenses from the following options. Incurred expenses are expenses paid
  1. A(-) expenses outstanding (+) prepaid expenses
  2. B(-) expenses outstanding
  3. C(-) expenses outstanding (-) prepaid expenses
  4. D(+) expenses outstanding (+) prepaid expenses
  5. E(+) expenses outstanding (-) prepaid expenses
Show answer & explanation

Answer: E. (+) expenses outstanding (-) prepaid expenses

Incurred Expenses are expenses paid plus expenses outstanding minus prepaid expenses. These expenses are first aggregated and then apportioned to each class of business on a reasonable and equitable basis i.e. between: Fire revenue account, Marine revenue account and Miscellaneous revenue account.

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Chapters covered

  1. 1.Financial Accounting — Meaning and Scope
  2. 2.Accounting Concepts, Principles and Convention
  3. 3.Accounting Standards — AS and Ind AS
  4. 4.Accounting Policies
  5. 5.Accounting Process
  6. 6.Accounting Methods, Procedures and Control
  7. 7.Depreciation Accounting
  8. 8.Bank Reconciliation Statement
  9. 9.Introduction to Company Accounts
  10. 10.General Insurance Accounting Process and Techniques
  11. 11.Insurance Accounting Regulations
  12. 12.Preparation and Presentation of Financial Statements
  13. 13.Reinsurance Accounting
  14. 14.IRDAI Investment Regulations 2016
  15. 15.Investment Accounting
  16. 16.Annual Reports
  17. 17.Statutory Audit
  18. 18.Internal Audit
  19. 19.Goods and Services Tax

Frequently asked questions

What is IC-46?
IC-46 (General Insurance Accounts Preparation & Regulation of Investment) is a compulsory Associateship-level examination offered by the Insurance Institute of India (III). General insurance accounts — revenue accounts, balance sheets, IRDAI financial reporting and the regulation of investments.
How many questions are in the IC-46 exam?
The IC-46 exam has 100 MCQs to be answered in 120 minutes (2 hours). All questions must be attempted — there is no negative marking.
What is the pass mark for IC-46?
You need to score at least 60% to pass IC-46. Scoring 75% or above earns a Distinction grade.
How many credit points does IC-46 carry?
IC-46 carries 30 credit points. These count toward your III certification — 60 credits for Licentiate, 250 for Associateship, 490 for Fellowship.

Related subjects

IC-01
Principles of Insurance
IC-11
Practice of General Insurance
IC-45
General Insurance Underwriting
IC-14
Regulations of Insurance Business
IC-27
Health Insurance
IC-29
General Insurance Claims

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