Important Points for IC 26 - Life Insurance Finance Exam
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Provided that an insurer shall prepare Revenue Account and Balance Sheet for the under mentioned businesses separately and to that extent the application of AS 17 shall stand modified : Participating policies and Non-participating policies : Linked business [As defined in regulation 2 (i) of the IRDA (Registration of Indian Insurance Companies) Regulations, 2000], Non-Linked business separately for Ordinary Life, General Annuity, pensions and Health Insurance, Business within India and business outside India.
There should be no attempt to reconcile Bank Accounts by transferring any un-reconciled balances to "Suspense Account".
Any expenses for which bills have not been paid as disclosed by the Register or other records should also be included in the outstanding expenses for which the above entry is made.
Such bills should be brought into the accounts only if the relevant assets have been delivered on or before the close of the accounting year and taken in stock.
A schedule should be prepared for all agents who are qualified for Bonus Commission in the accounting year and provision should be made for such bonus commission on the premium income from the close of the agency year to the end of the accounting year at the rate of bonus commission earned by the agent for the Agency year which ended during the financial year.
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