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    • Question

      A life insurance company estimates future policyholder

      liabilities at ₹900 crore and holds total assets of ₹1,200 crore. It also reports a solvency margin requirement of ₹250 crore. Calculate whether the company is in a surplus or deficit position as per IRDAI norms.
      A Deficit of ₹50 crore Correct Answer Incorrect Answer
      B Surplus of ₹100 crore Correct Answer Incorrect Answer
      C Surplus of ₹250 crore Correct Answer Incorrect Answer
      D Surplus of ₹50 crore Correct Answer Incorrect Answer
      E Balanced position Correct Answer Incorrect Answer

      Solution

      Surplus = Assets – (Liabilities + Solvency Margin) = ₹1,200 – ₹900 – ₹250 = ₹50 crore

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