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Sunday, April 12, 2020

Cost Accounting of Banking and Insurance companies



Cost Accounting of Banking and Insurance companies are decided on the basis of the following criteria:


1. Identifying Elements of Cost
a. Materials
b. Staff Cost
c. Overheads
2. Different Methods of Costing
a. Job order Costing
b. Process Costing
c. Service Costing
d. Operating Cost Statement
e. Contract Costing
f. Joint Products/By Products
g. Unit Costing
3. Cost Accounts & Financial Accounts Compare, Contrast and Reconcile
4. Cost Classification by behavior with reference to Banking & Insurance Industries
5. Standard Costing
a. Criticisms of standard costing
b. Material prices and usage; labour rate and efficiency(including idle time); variable overhead efficiency and expenditure; fixed overhead expenditure, volume, Capacity and efficiency/productivity.
c. Total material mix and yield variances
d. Sales price and volume variances(Note: the volume variance will be calculated on a unit basis using sales revenue, contribution or gross profit).
e. Interpretation of variances: interrelationship, significance
f. Benchmarking
g. Behavioural implications of setting standard costs ( Note: Standard process costing is not included)
6. Budgeting
a. Planning
b. Time series and regression
c. ‘What-if’ analysis
d. Controllable and uncontrollable costs
e. Fixed and flexible budgeting
f. Incremental budgeting
g. Rolling budgets
h. Zero-based budgeting
i. Activity-based budgeting
j. Balanced scorecard
k. Behavioural implications
7. Costing Systems and Decision Making 45%
a. Value and functional cost analysis
b. Resource planning systems: MRPI, MRPII and ERP.
c. Just-in-time
d. Activity- based, absorption, marginal and process(eg FIFO AND Average Variable Cost Approach AVCO) costing and throughout accounting
e. Cost reduction programmes
f. Total quality management
g. Multi-products CVP analysis including break even, margin of safety, contribution/sales ratio, break even charts, contribution, profit/volume graphs.
h. Relevant costs and revenues for short term decision making.
i. Single limiting factor analysis where a company has restricted freedom of action.
j. Graphical linear programming ( including an explanation of shadow prices)


SUGA Employment Services is providing Human Resources (HR) and Placement Services, Employment Services to Software / IT / ITES / BPO and other Core industries.

You can contact any of our HR Executives given below:

Mr. Sukumar - 9176871191

Mr.   Sugavanam -       9176244989
We have 800+ clients in Software, BPO, ITES, Banking, Financial Services, Insurance, TPA, FM CG Industry,  Automobiles, Construction, Real Estate, Medical industry, Hospitals, Jewelry Industry, Air conditioning and Refrigeration, Electrical wires and Cables, Plastics,  Fabrication and Welding, Education and Electronics industry

Thanks & Regards

Sugavanam N, M.A., F.I.I.I., MBA - CEO & Chief Strategic Consultant - 9176244989 
SUGA Consulting Services / SUGA Employment Services
26, TNHB Complex, 180, Luz Church Road, Luz Golden Enclave, Mylapore, Chennai – 600004
(Landmark: Near Luz Pillaiyar Koil,  Behind 'MAX' Showroom)
Mobile:  AirTel: 91-9940058497,  BSNL: 9445437117
Landline: 91-44-2498-4149

Email: sugaemployment@gmail.com  ,   sugaconsulting@gmail.com 

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SUGA = Success Unlimited Guaranteed Always
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Monday, January 7, 2019

IC 38 - Life Insurance Agent - IRDA Exam - Sample Questions





IC 38 - Life Insurance Agent - IRDA Exam - Sample Questions

1.       What do you mean by underwriting?
a.       Selection of lives

2.       What  is the  benefit of  underwriting  to the insurer?
a.       To prevent anti-selection or selection against the insurer

3.       Which  was  the first insurance company?
a.       Oriental  Insurance

4.       When does IRDA act Passed?
a.       1999

5.       What do you mean by IGMS?
a.       Integrated Grievance  Management  System

6.       Who Observe and monitor  IGMS?
a.       IRDA

Test 1 Questions and Answers


1.       What do you mean by underwriting?

·         Selection of lives

2.       What is the benefit of underwriting to the insurer?

·         To prevent anti-selection or selection against the insurer

3.       Which was the first insurance company?

·         Oriental  Insurance

4.       When does IRDA act Passed?

·         1999

5.       What do you mean by IGMS?

·         Integrated Grievance  Management  System

6.       Who Observe and monitor IGMS?

·         IRDA

7.       How Many Ombudsman Offices in India?

·         12
  1. If a corporate Agent resign from Insure A and want to Join Insure B then What is the time period to Join?
·         6 Month
  1. What do you understand by mortgage redemption insurance?

·         Insurance policy against Loan

10.   What is the first form of insurance company?

·         Marine Insurance


11.   What do you understand about moral Hazard?
·         Moral hazard is the likelihood that a client’s   behavior might change as a result of purchasing a life insurance policy and such a change would increase the chance of a loss.


12.   What  is the difference between revival  and  Lapse?

·         Reinstatement is the process by which a life insurance company puts back into force a policy that has either been terminated because of non-payment of premiums where as lapse means discontinue of services due to nonpayment of premium.

13.   Risk Many share by few people?

·         A Sufficiently large number of similar exposure units to make the losses reasonably predictable. This follows from the law of large numbers.

14.   What is the process to revive ordinary laps policy ?

·         The simplest form of revival is one that involves payment of arrears of premium with interest. The insurer would also call for a declaration of good health or some other evidence of insurability like a medical examination when lapse period is more than 6 month.


15.   What is the universal/variable life insurance policy?

·         Universal life insurance is a form of permanent life insurance characterized by its flexible premiums, flexible face amount and death benefit amounts, and the unbundling of its pricing factors.

16.   What we call the maturity received under money back policy?

·         Maturity claim


17.   What is the consumer protection Act?

·         Act was passed to provide for better protection of the interest of consumer


18.   _________ relates to inaccurate statements, which are made without any fraudulent intention?

·         Misrepresentation


19.   Which of the below is not a part of a valid contract?

·         Coercion


20.   For a life insurance policy affected under sec 6 of MWP act the death claim is payable to the _______?

·         Trustee

21.   Nomination is the affected under _________of  insurance act 1938?

·         Sec 39

22.   Insurance is an example of _________?

·         Risk Transfer

23.   Choose the correct answer. Option 1. Age is material fact for the underwriter.  Option 2. The premium charged by the insurer is a function of age?

·         Both are correct

24.   Which of the below is not a following is negative approach to risk management?

·         Risk Retention


25.   Vishal has a direct impact of 25% of the business of the organization. Hence his employer should take a ________ in his name?

·         Key man policy


26.   ____________ was formed in the year 2000 to regulate and control insurance companies?

·         IRDA

27.   With respect to health insurance claims, who is NOT a stakeholder in the claims, who is NOT a stakeholder in the claims process?

·         Regulator

28.   Which of the following is a standard Age Proof?

·         PAN

29.   Which of the following accept appeals from the district court?

·         State Commission

30.   Which of the following have the power of civil court?

·         All the above

31.   Which of the following will be charged the LOWEST premium by the underwriter?

·         Preferred Risk

32.   Which document will be used to check the KYC identification of corporate?

·         All the above

33.   All the information are correct related with primary health care except?

·         Primary health care centre’s which are referral units for about six sub-centre’s have been established for every 30000 population

34.   In which case Health Insurance Company can denied the claim payment?

·         Any of the above



35.   One customer is interested to take loan against his insurance  policy and wants to leave it as collateral. Which Document stating his ownership?


·         Policy Document

36.   Which schemes can be considered under fixed benefit plan?

·         Critical illness cover

37.   Certificate of deposit, Treasury bill, commercial paper comes under which market?

·         Money Market

38.   In which year IRDA act was established?

·         1999

39.   Which of the following is the evidence of risk acceptance by the insurer?

·         First premium receipt

40.   Which of the below is not an element of the life insurance business?

·         Subsidy

41.   What is the main purpose to buy key man insurance policy?

·         Business Profita                bility

42.   Expand the Term IGMS?

·         Integrated Grievance Management System

43.   Which of the below alteration will be permitted by an insurance company?

·         Splitting up of the policy into two or more policies



44.   Interest rates are one of the important components used while determining the premium. Which of the below statement is correct with regards to interest rates?

·         Higher the interest rate assumed, lower the premium

45.   When is it essential for insurable interest to be present in case of life insurance?

·         At  the time of taking out insurance

46.   Ordinary rate implements on which category of life?

·         Standard Life


47.   Suresh and his friend are of same age group. Suresh is paying higher premium compare to his friend. What Extra benefit his nominee will receive in case of any causality?

·         Suresh’s nominee will get higher compensation as compare to his friend’s nominee.

48.   An individual with an aggressive risk  profile is likely to follow wealth  _______ investment style?

·         Accumulation

49.   How will you describe the agreement between insurer and insured?

·         Consensus ad idem

50.   Which among the following can be categorized under transactional products?

·         Bank Deposit

51.   For an insurance policy nomination is allowed under _______ of the insurance act, 1938?

·         Section 39

52.   Ashok manage 25% of company’s sale. Which insurance policy can protect the financial loss to company in case of death of ashok?

·         Key man Insurance

53.   What does inter-temporal allocation of resource refer to?

·         Allocation of resources  over time
·          

54.   Santosh has applied for a term insurance policy. His anticipated mortality is significantly higher than standard lives. Under risk classification, Santosh will be classified under ______?
·         Substandard  Risk


55.   Within the _______   period ombudsman passes the award?

·         3 Months

56.   Setup of health care facility will depend on?

·         All the above


57.   Which of the following statement is correct related with reversionary bonus except?

·         One declared its never be taken back


58.   Which one of the following statement is correct related with terminal bonus except?

·         Company provides guarantee in advance

59.   Which of the below statement is correct with regards to a policy returned by a policy holder during the free look period?

·         The insurance company  will refund the premium after adjusting  for proportionate risk premium for the period on cover, medical  examination expenses and stamp duty charges

60.   Which of the below is not an advantage of cash value insurance contracts?

·         Lower yield


61.   Which one of the document is required to settle health claim?

·         All the above

62.   Mortality is directly related with?

·         Age
63.   Which information is incorrect while filling a complaint in consumer court?

·         Lawyer                 is mandatory to file the complaint

64.   Which of the below statement best describes the concept of claim? Choose the most appropriate option

·         A Claim is a demand that the insurer should make good the promise specified in the contract

65.   When risk is shared by more than one insurance?

·         Coinsurance

66.   Which category of customer would be considered in high risk individuals?

·         Influence of sedatives and other stimulants


67.   In Mir (Mortgage Redemption Insurance) policy which of the statement is true?

·         SA reduces with every  year premium remains constant


68.   Mr. Dinesh responsible for 25% of sales in the company suddenly dies due to an accident, the firm suffers from huge losses due to declined sales & expenses on new recruitment , training. This can be avoided by?

·         Key person Insurance





69.   Substandard life is explained as?

·         Life with lesser standards than normal life and accepted by charged extra premium

70.   Trend of increase in price of commodities is refereed as?

·         Inflation

71.   The concept of human life value was derived by?

·         Solomon S  Huebner

72.   Transfer of risk can be done by?

·         Buying  a life  Insurance

73.   Public sector insurance companies have launched a health scheme for poor named as?

·         Jan Arogaya

74.   Cover notes are issued in following insurance a) Marine b) Health c) Motor d) Fire?

·         Only a & C

75.   In which of the policy theoretically the cash value of the policy may become zero in given time of the policy?

·         Unit linked / Variable Insurance  Policy


76.   During which stage of life will an individual appreciate past savings the most?

·         Post Retirement

77.   In a town of 400 houses each costing 20000, 4 houses get burnt every year. How much should each contribute to share the losses?

·         200


78.   In decreasing term insurance, the premium paid ______ over time?

·         Remain constant


79.   The sum assured under key man insurance policy is generally linked to which of the following?

·         Business profitability

80.   In case the policyholder is not satisfied with the policy, he / she can return the policy within the free –look period i.e.  Within _________ of receiving the policy document?


·         15 days


Interested Candidates may send resume to:

Email:   ceo@sugaconsulting.in 

sugaemployment@gmail.com

sugaconsulting@gmail.com 

sugaemp1@gmail.com  

sugaemp2@gmail.com

SUGA Employment Services is providing Human Resources (HR) and Placement Services, Employment Services to Software / IT / ITES / BPO and other Core industries.

Official whats app no: 8825518608

You can contact any of our HR Executives given below:

 Mr.   Manoj Kumar -    9176631627 , 9176871191
Mr. Gladson-  9884145186, 9176611627

Ms. Jenita -  9176244979

Mr.   Sugavanam -       9176244989, 9445437117, 9940058497
We have 800+ clients in Software, BPO, ITES, Banking, Financial Services, Insurance, TPA, FM CG Industry,  Automobiles, Construction, Real Estate, Medical industry, Hospitals, Jewelry Industry, Air conditioning and Refrigeration, Electrical wires and Cables, Plastics,  Fabrication and Welding, Education and Electronics industry

Thanks & Regards

Sugavanam N, M.A., F.I.I.I., MBA - CEO & Chief Strategic Consultant - 9176244989 
SUGA Consulting Services / SUGA Employment Services
26, TNHB Complex, 180, Luz Church Road, Luz Golden Enclave, Mylapore, Chennai – 600004
(Landmark: Near Luz Pillaiyar Koil,  Behind 'MAX' Showroom)
Mobile:  AirTel: 91-9940058497,  BSNL: 9445437117
Landline: 91-44-2498-4149

Email: sugaemployment@gmail.com  ,   sugaconsulting@gmail.com


----------------------------------------------------------------------
SUGA = Success Unlimited Guaranteed Always
----------------------------------------------------------------------

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