Author name: Administrator

1511. Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called

conversion expense costing system
inventory costing system
process costing system
job costing system
✅ The correct answer is C.
Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.

1494. Given below are some events that will trigger survival claims. Identify which of the below statement is incorrect?

Claim paid on maturity of a term insurance policy
An instalment payable upon reaching the milestone under a money-back policy
Claim paid for critical illnesses covered under the policy as a rider benefit
Surrender value paid on surrender of an endowment policy by the policyholder
✅ The correct answer is A.
Claim paid on maturity of a term insurance policy will trigger survival claims. The payment by the insurer to the insured on the date of maturity is called maturity payment. The amount payable at the time of the maturity includes a sum assured and bonus/incentives, if any.

1496. What are the parts of a policy bond?

Policy schedule
Standard provisions
Specific provisions
All of the above
✅ The correct answer is D.
Policy schedule, Standard provisions and Specific provisions are the parts of a policy bond.

1499. When does a claim arise under an insurance policy?

Whenever the policyholder feels the need for money
When the insured events happen
When a premium is not paid
Whenever any of the three things mentioned above happen
✅ The correct answer is B.
A claim arise under an insurance policy When the insured events happen. The indemnity only applies to claims, arising out of accident occurring in the insured premises during the Period of Insurance, first made in writing against the Insured and notified to the Company by the Insured in writing during the Policy Period or applicable extended reporting period.
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