706. Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under _________.

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Standard lives
Preferred risks
Substandard lives
Declined lives
✅ The correct answer is B.
Santosh has applied for a term insurance policy. His anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium. Under risk classification, Santosh will be classified under Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims. Therefore, insurance companies prefer it over a standard or higher risk because the former represent a better chance to make more profit. For the insurer, fewer claims equates to more money taken in and less money paid out.

705. Health care premium for workers and pension costs are included in

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payroll fringe costs
health costs
premium costs
workers costs
✅ The correct answer is A.
Health care premium for workers and pension costs are included in payroll fringe costs. A fringe benefit rate is a percentage that results from dividing the cost of an employee’s fringe benefits by the wages paid to the employee for the hours actually worked.

704. In India there are __________ recognized stock exchanges at present.

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fifteen
sixteen
twenty one
twenty three
✅ The correct answer is D.
As of now there are 23 SEBI approved Stock Exchanges in the country. Stock market is managed and regulated by the Securities and Exchange Board of India (SEBI). Indian stock exchanges may refer to the 18 official stock exchanges located in India, the largest of which are the NSE and BSE.

703. The constitution of the IRDA consists of not more than _________ members.

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10 members
7 members
9 members
8 members
✅ The correct answer is C.
In order to control private sector insurance companies, the Government of India passed the IRDA Act (Insurance Regulatory and Development Authority Act, 1999) which enabled it to regulate the private sector companies in insurance business.
One chairperson and not more than 9 members of whom not more than 5 would be full time members and they are appointed by the government. Those who have experience in life and general insurance, actuarial service, finance, economics etc., are appointed.

702. The costing method which can be used in industry where the product pass through different processes is known as ________.

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job costing
operating costing
batch costing
process costing
✅ The correct answer is D.
The costing method which can be used in industry where the product pass through different processes is known as process costing. Process costing is used when there is mass production of similar products, where the costs associated with individual units of output cannot be differentiated from each other.