Which of the following is incorrect with regards to portfolio method?

A The total investment return is shared between policyholders
B No attempt is made to distinguish between investments of previous years over current investments
C This method gives homogenized rates of return
D None of the above

Correct Answer: None of the above

All of the above are correct with regards to the portfolio method. The portfolio method is an accounting method that credits all funds on the specified current rate of interest, regardless of when the money was placed in the account.
Bissoy MCQ
#Commerce #Insurance

Related Questions

The Head of a newly formed government desires to appoint five of the six elected members A,B,C,D,E and F to portfolios of Home,Power,Defence ,Telecom and Finance.F dose not want any portfolio if D gets one the five.C wants either Home or Finance or on portfolio.B says that if D gets either Power or Telecom then she must get the other one.E insists on a portfolio if A gets one. Which is a valid assignment ?
A B-Home, F-Power,E-Defence,C-Telecom ,A-Finance
B A-Home, B-Power,E-Defence,D-Telecom ,F-Finance
C C-Home, D-Power,A-Defence,B-Telecom ,E-Finance
D A-Home, B-Power,C-Defence,D-Telecom ,E-Finance
The Head of a newly formed government desires to appoint five of the six elected members A,B,C,D,E and F to portfolios of Home,Power,Defence ,Telecom and Finance.F dose not want any portfolio if D gets one the five.C wants either Home or Finance or on portfolio.B says that if D gets either Power or Telecom then she must get the other one.E insists on a portfolio if A gets one. If a gets Home and C gets Finance,then which is NOT a valid assignment for Defence and Telecom?
A B-Defence,D-Telecom
B B-Defence,E-Telecom
C F-Defence,B-Telecom
D D-Defence,B-Telecom
Risk on a stock portfolio which cannot be eliminated or reduced by placing it in diversified portfolio is classified as
A diversifiable risk
B market risk
C stock risk
D portfolio risk
Risk on a stock portfolio which can be reduced by placing it in diversified portfolio is classified as
A stock risk
B portfolio risk
C diversifiable risk
D market risk
Which of the following statements is incorrect with regards to decreasing term assurance?
A Death benefit amount decreases with term of coverage
B Premium amount decreases with term of coverage
C Premium remains leveled throughout the term
D Mortgage redemption plans are an example of decreasing term assurance plans
Which of the below statement is incorrect with regards to a policy against which a loan has been taken from the insurance company?
A The policy will have to be assigned in favour of the insurance company
B The nomination of such policy will get cancelled due to assignment of the policy in favour of the insurance company
C The nominee’s right will be affected to the extent of the insurer’s interest in the policy
D The policy loan is usually limited to a percentage of the policy’s surrender value
Which of the below statement is incorrect with regards to decreasing term assurance?
A Death benefit amount decreases with the term of coverage
B Premium amount decreases with the term of coverage
C Premium remains level throughout the term
D Mortgage redemption plans are an example of decreasing term assurance plans
Which of the below statement is incorrect with regards to assignment of an insurance policy?
A In case of Absolute Assignment, in the event of death of the assignee, the title of the policy would pass to the estate of the deceased assignee
B The assignment of a life insurance policy implies the act of transferring the rights right, title and interest in the policy (as property) from one person to another
C It is necessary that the policyholder must give notice of assignment to the insurer
D In case of Absolute Assignment, the policy vests absolutely with the assignee till maturity, except in case of death of the insured during the policy tenure, wherein the policy reverts back to the ben
Which of the following is true regarding the expected return of a portfolio?
A It is a weighted average only for stock portfolios
B It can only be positive
C It can never be above the highest individual return
D All of the above are true
A portfolio which lies below the efficient frontier is described as________________.
A optimal
B unattainable
C dominant
D dominated

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