Accounting: Accounting is the process of recording, summarizing, and reporting the financial transactions of the

company, like what comes in and what goes out. It gives insights into a company's financial statement.

There are different types of accounting some of them are:

Financial Accounting, Cost Accounting, Tax accounting, and management accounting
Financial Accounting: Financial accounting records, summarizes, and reports the business transactions that take
place over a while in an organization.
Cost Accounting: Cost accounting helps us to analyze a company’s unit cost of production, sales, and the general
production process that the company carries out.
Tax Accounting: Tax accounting helps us to register and prepare reports related to tax returns to the public treasury
and payments of taxes.
Management Accounting: Management accounting has a broader vision than all other types of accounting since it
records all types of economic and financial information of the company to be able to make short and long-term
decisions.
Principles of accounting: Principle of accounting is the fundamental alw and guidelines that company need to
follow while maintaining the transactions in their account.
Cost Principle: It states that the value of an asset should be recorded as per its historical price rather than its
current market value.
Matching Principle: It states that the revenue of the company need to match with the revenue they generate in the
same accounting period.
Going Concern Principle/; It states that the company will continue its operation for the foreseeable future there is
no need to liquidate or curtail its operation. The company is able to meet its long-term obligation.
Revenue Recognition principle: It states that the company should record the revenue when that is earned or
recognized rather than when cash is received.
Accrual Concept: It states that the revenue and expenses should be recorded when they are earned or recognized
rather than when it is received.
Double Entry System: The double entry system states that every transaction of a company should affect at least
two corresponding accounts such as debit and credit. And it must be ensured that all debit transactions are equal to
credit transactions.
The Golden Rule of accounting is a set of fundamental laws and guidelines that guides us to maintain the
company’s transactions in three different types of account
Personal Account: It is an individual person or organization account under this account the transactions are
recorded as debit to the receiver and credit to the giver.
Real Account: It relates to the assets of the company both tangible and intangible like PPE and goodwill, Under
this account transactions are recorded as debit what comes in, and credit what goes out.
Nominal Account: It relates to the income, expenses, gains, and interest of the account. Under this account,
transactions are recorded as Debit all the expenses and credit all the income.
Trail Balance: Trial Balance is the formal record of the financial transaction of the company in the ledger account at
a specific point in time. It is performed to ensure accuracy and maintain that all debit balances are equal to credit
balances. It is prepared before the preparation of the final statement, which helps in detecting errors in the
accounting records.
Offset Accounting: Offset accounting is the process of canceling or eliminating the entry from an account through
equal entry in the corresponding account. In short, it is used for eliminating bad debt from an account, it is also
known as a contra account.
Accounting Standards: Accounting standards is the set of fundamental laws and guidelines that the company should
follow while maintaining its accounts. It is issued by ICAI.
GAAP: GAAP which stands for the Generally Accepted Accounting Principle is the cluster of accounting standards
and common industry usage. It is issued by ICAI and provision of companies act 1956. It is issued by organisation
to
Record their financial information
Summarizing accounting records into Financial statements
Disclose information whenever required.
GST: GST which stands for the goods service tax is a type of indirect tax that was introduced on 1 st July 2017. It is
a multi-stage tax imposed on every stage of value addition, replacing multiple indirect taxation laws.
TDS:

Journal Entry: Journal entry is the process of recording the financial transaction of the company in the company’s
accounting system it has two essential components debit and credit and it must be ensured that all debit balances
equal to all credit balances.
It is of 6 types
Simple Journal Entry: In this type of entry there is only one entry recorded for the transaction.
Compound Journal entry: In this entry, more than one entry is made for the transaction like more than one debit,
credit, or both.
Adjusting Journal Entry: Entries made at the end of an accounting period to update income and expenses that
have not yet been recorded.
Closing Journal Entry: Entries made at the end of an accounting period to transfer balances from temporary
accounts to permanent accounts.
Reversing Journal Entry: Entries made to reverse an adjusting entry from the previous period.
Recurring Journal Entry: Entries that repeat over multiple periods for repetitive transactions like rent or utilities.
Accrual Accounting: Accrual accounting states that the revenue and expenses are recorded when they are earned
or incurred regardless of when it is actually received or paid. For example if a company provides service in
December but payment is received in January then as per accrual accounting revenue is recorded in December. This
methods provides a more accurate picture of company’s financial transaction.
Cost Accounting: Cost accounting states that the revenue and expenses are recorded when they are received. For
example, if a company provided service in December but payment is received in January, then as per cost
accounting is recorded in January. It does not provide a clear picture of the company's financial transactions.
Convention of accounting:
Conservatism: It states that the expenses and liabilities should be recorded as soon as possible but income and
assets are recorded when they are assured.
Consistency: The company should follow the same accounting method from period to period to ensure better
comparability.
Full Disclosure: It states that the Company should disclose all its major financial transactions in its financial
statement to provide a clear view to the user for making decisions.
Deferred Revenue: It is also known as unearned revenue it states that the money which is received but the service
or goods has to be provided in the future.
For Ex: Rent payments received in advance,
Deferred Expenses: It is also known as prepaid expenses, which means that the payment has been paid in advance
for the goods or services to be received in the future.
For Ex: a Subscription for OTT, mobile recharge.

Bad Debt: A receivable (money owed) that is not expected to be collected due to the debtor's inability to pay. This
often occurs after a prolonged period of non-payment or when a company faces bankruptcy.

Write-Off: The bad debt is eventually written off in the company’s financial records. This means it is removed
from the accounts receivable and reflected as an expense, reducing net income.

Provisions for Bad Debt: Companies often create a provision or allowance for bad debts in anticipation of some
receivables becoming uncollectible. This helps in managing financial expectations and avoiding sudden losses
when bad debts arise.

Implication for Financial Statements: Bad notes lower a company’s revenue and profitability in the period they
are recognized and can also indicate credit risk and poor collection processes.

Materiality and its Types

Materiality refers to the significance of an error or omission in financial statements that could influence the
decisions of users. The concept of materiality is subjective and varies depending on the size and nature of the
transaction or error.
Types of Materiality:
 Overall Materiality (Planning Materiality): The maximum misstatement that can be tolerated in the
financial statements as a whole without affecting decision-making.
 Performance Materiality: A lower threshold set to ensure that the sum of uncorrected and undetected
misstatements does not exceed overall materiality.
 Specific Materiality: Set for particular transactions or accounts that might be considered more important
to the users, such as revenue or key expenses.

IND AS and IND AS 115

IND AS (Indian Accounting Standards) are standards developed by the Ministry of Corporate Affairs (MCA) to
converge with International Financial Reporting Standards (IFRS). They provide guidelines on how companies
should report their financials in a standardized way.
IND AS 115 specifically deals with Revenue from Contracts with Customers. It introduces a 5-step model for
recognizing revenue from contracts, aiming to improve comparability across industries and capital markets by
aligning Indian standards with IFRS 15.

5-Step Model of Revenue Recognition (IND AS 115)

The 5-step model in IND AS 115 helps entities recognize revenue from contracts with customers. The steps are:
1. Identify the contract with the customer: A contract must have clear rights, obligations, and commercial
substance.
2. Identify the performance obligations: Determine the distinct goods or services promised in the contract.
3. Determine the transaction price: This includes fixed amounts and any variable consideration, discounts,
or incentives.
4. Allocate the transaction price to the performance obligations: Allocate the price based on the relative
standalone selling prices of each good or service.
5. Recognize revenue as the performance obligations are satisfied: Revenue is recognized when (or as) the
entity satisfies each performance obligation, either over time or at a point in time.
Capital Gain: Capital gain is the amount of profit earned on the sale of an asset that has increased in value over
the holding period.
LTCG-12.5%, STCG-20% up to 1,25,000 its free
 Fictitious Asset: Fictitious assets are expenses or losses that are not offset in a company’s profit and loss account.
They are represented in financial statements as actual cash expenditures but are not actually assets of the
company.

Reliability: Information is called reliable if it is free from any material error and bias and can be depended upon by
users. Reliable information provides and true and clear view of the company's financial performance and position.

Relevance: Information is called relevance if it can influence the decision of users by helping them evaluate past,
present, or future events.
1. What is group credit life insurance?
Group credit life insurance is a policy designed to cover the unpaid loan balance of a borrower if
they pass away. It is typically offered to borrowers by lenders or financial institutions. The
insurance ensures that the loan is fully or partially paid off, relieving the borrower's family of the
financial burden, and protecting the lender from default. The premium is usually added to the loan
payment, and the coverage decreases as the loan is repaid.

2. What factors influence the pricing of group term life insurance?

The pricing of group term life insurance is influenced by multiple factors:
o Age and health of the group members: Younger, healthier individuals lower the risk and
thus lower premiums.
o Size of the group: Larger groups generally lead to lower premiums because the risk is
spread across more people.
o Occupation: Groups working in high-risk industries may face higher premiums.
o Claims history: If the group has a history of high claims, the premiums may be adjusted
upwards.
o Sum assured: The higher the coverage amount, the higher the premiums.
o Gender mix: Gender can also affect pricing, as statistical mortality rates differ between
men and women.

3. Why is it important to monitor the profitability of a group insurance portfolio?

Monitoring the profitability of a group insurance portfolio is essential to ensure that the business is
sustainable. Insurers collect premiums to cover the costs of future claims, administrative expenses,
and profit margins. If claims exceed collected premiums, the portfolio could become unprofitable,
requiring adjustments in pricing or coverage. Regular monitoring allows the insurer to detect
trends such as increased claims or market shifts, enabling timely adjustments to maintain
profitability.

4. What is the role of an insurance company's underwriting team?

The underwriting team assesses the risks associated with insuring a person or group. They review
various factors like health, age, lifestyle, and occupation to determine the likelihood of claims
being made. Based on this risk evaluation, they decide the premium rate, policy terms, and
whether to accept or decline coverage. The underwriting team plays a crucial role in maintaining
the balance between providing coverage and ensuring the company doesn’t face excessive
financial exposure.

5. How do insurance companies maintain competitiveness in the market?

Insurance companies stay competitive by:
o Offering competitive pricing: By balancing risk and profitability, insurers can offer
attractive premiums to customers.
o Innovating products: Adding unique features or customizable options helps meet
customer needs better than competitors.
o Customer service: Fast claims processing, good communication, and digital tools can
enhance customer satisfaction.
o Market research: Regular analysis of market trends helps companies stay ahead by
offering relevant products at the right time.

6. What is a claims ratio, and why is it important in insurance?

The claims ratio is the percentage of claims paid out by an insurance company compared to the
 total premiums collected. For example, if an insurer collects $1 million in premiums and pays
$700,000 in claims, the claims ratio is 70%. A high claims ratio may indicate that the company is
paying out more in claims than expected, leading to potential financial loss. Monitoring the claims
ratio helps insurers adjust pricing to maintain profitability.

7. What is the difference between group term life insurance and individual term life
insurance?
Group term life insurance provides life coverage to a group of individuals, usually employees of a
company, under a single policy. It is generally more affordable, and medical underwriting is less
strict or waived altogether. Individual term life insurance is purchased by an individual, where
premiums are based on personal factors like age, health, and occupation. The policy is tailored to
the individual’s needs but usually comes at a higher cost than group insurance.

8. How does regulatory compliance affect insurance pricing?

Insurance companies must follow various regulations that are designed to protect consumers and
ensure the financial stability of insurers. For example, solvency regulations require insurers to
hold sufficient reserves to pay future claims. If new regulations demand higher reserves or stricter
reporting, companies may need to adjust their pricing to ensure compliance. Regulations can also
impact product features, limiting certain risks, or mandating minimum coverage levels, which can
affect how prices are set.

9. What is product differentiation, and why is it important in the insurance industry?

Product differentiation refers to creating unique features or services in an insurance product to
stand out from competitors. This could include offering additional riders, more flexible terms, or
better customer service. Differentiation is important because it allows insurers to attract and retain
customers in a crowded market by offering something competitors don’t. It also helps companies
build brand loyalty and justify premium pricing.

10. What are the benefits of collaborating with the sales team when designing insurance
products?
Collaboration with the sales team ensures that the products designed meet market needs and client
demands. Sales teams interact directly with clients and understand their preferences and pain
points. By working together, the product development team can tailor features that make the
products more sellable, while the sales team can better understand the product’s strengths and
limitations, improving their ability to market it effectively.

11. What is a premium, and how is it calculated in life insurance?

A premium is the payment made by the policyholder to the insurance company in exchange for
coverage. The premium is calculated based on several factors:

 Age: Older individuals tend to pay higher premiums due to higher mortality risk.
 Health: Poor health may increase the premium as it raises the likelihood of a claim.
 Coverage amount: The higher the sum assured, the higher the premium.
 Lifestyle factors: Smokers, or those with high-risk occupations, may be charged more.
 Term length: The longer the policy term, the more the risk, leading to higher premiums.

12. What is reinsurance, and why do insurance companies use it?

Reinsurance is insurance for insurance companies. It allows insurers to transfer a portion of their
risk to another insurer (the reinsurer). By sharing risks, insurers can protect themselves from
significant losses caused by major claims, like natural disasters or large-scale accidents. This
 practice helps maintain the insurer’s financial stability while enabling them to underwrite larger or
riskier policies without fear of overwhelming losses.

13. What is risk pooling in group insurance?

Risk pooling is the process of combining the risks of many individuals into a single group. In
group insurance, this means that everyone in the group is covered under a single policy, and the
risk of a claim is spread across all members. Because the risk is shared, premiums are typically
lower than for individual policies. Risk pooling works on the principle that only a small
percentage of people will claim the insurance at any given time.

14. What is the importance of product training for sales teams in the insurance industry?
Product training helps sales teams understand the features, benefits, and limitations of the
insurance products they are selling. A well-trained sales team can explain products more clearly to
customers, addressing their specific needs and concerns. This leads to better customer satisfaction
and higher conversion rates. Additionally, training ensures the sales team is aligned with
compliance and avoids making misrepresentations, which can lead to legal or reputational issues.

15. What is loss ratio, and how does it impact insurance pricing?
The loss ratio measures the percentage of premiums used to pay claims. If the loss ratio is too high
(e.g., claims are higher than expected), the insurer might be losing money, prompting them to
increase premiums. Conversely, if the loss ratio is low, it means the insurer has room to maintain
or reduce premiums while still being profitable. Monitoring the loss ratio ensures that pricing
strategies are aligned with actual risk exposure.

16. What is the role of an actuarial team in an insurance company?

Actuaries analyze statistical data to predict future claims and assess risk. They use models to
calculate how likely it is that claims will be made and how much those claims will cost. Actuaries
help determine the pricing of premiums, ensure the company maintains enough reserves to cover
claims, and assist in financial planning. They play a critical role in ensuring the company remains
financially stable while offering competitive products.

17. What are the key features of group term life insurance?
Group term life insurance provides life coverage to a group of individuals under a single policy.
Key features include:

 Affordable premiums: Since risk is spread across a group, premiums are generally lower
compared to individual policies.
 No medical exams: In many cases, group members do not need to undergo individual medical
exams, making the process simpler and faster.
 Employer-sponsored: It is often provided by employers as part of a benefits package, with
premiums partially or fully paid by the employer.
 Fixed coverage: The coverage amount is usually a fixed sum or a multiple of the employee’s
salary.
 Temporary coverage: Group term policies often offer coverage for a specific period (usually
during employment) and may not be portable once the employee leaves the company.

18. How do market conditions affect the pricing of insurance products?

Market conditions like inflation, interest rates, and competition can significantly affect insurance
pricing. For example:
 Inflation increases the cost of claims (e.g., medical expenses or property repairs), which may lead
insurers to raise premiums.
 Low interest rates mean insurers earn less on their invested reserves, potentially causing them to
raise premiums to maintain profitability.
 Competition may force insurers to lower their premiums or offer additional benefits to attract
customers, even if it means reduced margins.

19. What is underwriting, and how does it impact the insurance process?
Underwriting is the process by which an insurance company evaluates the risk of insuring a
person or group and decides whether to offer coverage and at what price. The underwriter reviews
factors such as age, health, occupation, and past claims history to assess the likelihood of a claim
being made. A thorough underwriting process ensures that the insurer collects enough premiums
to cover future claims while remaining competitive. Underwriting impacts the final terms and
conditions of the policy, including exclusions and premium rates.

20. Why is it important to review pricing strategies periodically in the insurance business?
Insurance companies must review their pricing strategies periodically to ensure they remain
competitive and profitable. Markets change, risks evolve, and claim patterns shift over time.
Regularly reviewing pricing helps ensure that premiums reflect the current risk environment and
that the company isn’t underpricing (leading to losses) or overpricing (leading to customer
attrition). It also allows the company to respond to new regulations, emerging competitors, or
shifts in customer behavior.

21. What is the importance of gap analysis in product development for insurance?
Gap analysis involves identifying areas where the current product offerings don’t fully meet
market demand or where competitors offer something superior. By performing gap analysis,
insurers can develop new products or improve existing ones to fill these gaps, ensuring they are
competitive and relevant to customer needs. It also helps insurers avoid missing out on potential
customers or losing existing ones to better-equipped competitors.

22. What is the role of regulation in group insurance products?

Regulations play a critical role in ensuring that group insurance products are fair, transparent, and
financially stable. Regulators set guidelines on minimum coverage, solvency requirements, and
consumer protections. They ensure that insurers have enough reserves to pay claims and that
customers are not misled about what the policy covers. Compliance with these regulations builds
trust between the insurer and its clients, and failure to comply can lead to penalties, reputational
damage, or the inability to operate.

23. What are the typical exclusions in group life insurance policies?
Exclusions in group life insurance policies are specific conditions or causes of death that are not
covered by the policy. Common exclusions include:

 Suicide: Death by suicide may not be covered, particularly if it occurs within the first one or two
years of the policy.
 War and terrorism: Death resulting from acts of war or terrorism is typically excluded.
 Dangerous activities: Death due to participation in high-risk activities like skydiving, scuba
diving, or professional sports may not be covered unless additional coverage is purchased.
 Pre-existing conditions: Some policies may exclude deaths related to medical conditions that
existed before the policy was taken out.
 24. What are mortality tables, and how are they used in insurance?
Mortality tables, also known as life tables, are statistical charts that show the probability of death
at each age for a given population. Insurers use these tables to estimate the life expectancy of
policyholders and assess the likelihood of a claim being made within a certain period. Mortality
tables are essential in calculating premiums for life insurance policies, as they allow the insurer to
balance the cost of providing coverage with the risk of a payout.

25. How can technology improve the pricing and management of insurance products?
Technology has significantly enhanced the pricing and management of insurance products in
several ways:

 Data analytics: Insurers can use big data and predictive analytics to more accurately assess risk,
leading to more precise pricing models.
 Automation: Automated underwriting and claims processing improve efficiency and reduce costs,
allowing insurers to offer more competitive pricing.
 Artificial Intelligence (AI): AI can analyze customer data to predict behavior and customize
product offerings, helping insurers better match products to customer needs.
 Digital platforms: Technology allows insurers to offer better customer service through mobile
apps and online portals, enabling customers to manage their policies, file claims, and renew
coverage more easily.

Technical and Pricing-Related Questions:

1. How do you approach pricing group credit life and group term insurance schemes?
When pricing group credit life and group term insurance schemes, I begin by assessing the risk
profile of the group, which includes factors like age distribution, health status, and occupation. I
use actuarial principles to estimate mortality and morbidity rates for the group. It's crucial to
balance profitability and competitiveness, so I review past claims data, market trends, and industry
benchmarks. The final premium needs to cover not only the risk but also expenses such as
administration costs, commissions, and profit margins.
2. What factors do you consider when reviewing or adjusting the pricing of insurance
products?
The key factors I consider include:
o Mortality and Morbidity rates: These indicate the likelihood of claims.
o Claims history: Historical data helps predict future claims trends.
o Expense ratios: Administrative and operational costs impact pricing.
o Market competition: Ensuring our prices are competitive without sacrificing profitability.
o Regulatory changes: New laws or guidelines might affect pricing models.
o Economic factors: Inflation, interest rates, and changes in medical costs.
3. How do you monitor the profitability of a group portfolio?
I monitor profitability by analyzing key metrics like the loss ratio (claims paid vs. premiums
earned), combined ratio (losses plus expenses as a percentage of premiums), and retention rates
(policy renewals). Regular trend analysis helps detect shifts in claims patterns or pricing
inadequacies. If the loss ratio begins to exceed acceptable thresholds, it may signal a need for
pricing adjustments or product modifications.
4. Can you explain the process of risk assessment in group life insurance?
Risk assessment in group life insurance involves evaluating the group’s overall health and
demographic factors. Key data points include age, gender, occupation, and lifestyle factors. The
 underwriting team uses actuarial models to calculate the likelihood of claims based on these
factors. For larger groups, individual medical assessments might not be necessary, but for smaller
groups, more detailed health assessments could be required.
5. Describe a time when you had to revise the pricing strategy for an insurance product. What
approach did you take?
In a previous role, I noticed an increase in the loss ratio for a group life product, which was
eroding profitability. I analyzed the claims data and found that a particular demographic was
disproportionately contributing to claims. I adjusted the pricing model by increasing premiums
slightly for higher-risk groups, while keeping prices competitive for the lower-risk ones. I also
communicated these changes to the sales team to manage customer expectations, and the revised
strategy restored profitability without significant customer attrition.

Collaboration and Communication:

6. How would you communicate complex pricing strategies to a non-technical sales team?
I would break down the pricing strategy into simple, understandable terms. Instead of using
actuarial jargon, I’d focus on the "why" behind the pricing – for example, explaining that claims
trends or regulatory requirements necessitate changes in premiums. Visual aids like charts or
comparisons with competitors could help illustrate the points. I’d also emphasize how the pricing
ensures both competitiveness and profitability, making it easier for the sales team to convey this to
clients.
7. How do you balance the requirements of the sales team with maintaining profitable pricing?
Balancing sales goals with profitability requires open communication and collaboration. I work
with the sales team to understand their concerns about price sensitivity and customer demands.
Simultaneously, I maintain transparency about the financial metrics that drive pricing decisions.
Finding a middle ground, such as adjusting non-critical features while keeping core benefits intact,
can help maintain profitability while still supporting sales targets.
8. Give an example of a situation where you had to work closely with sales and product
development teams. How did you handle it?
In one project, the sales team needed a more competitively priced product to target a new market
segment. I collaborated with product development to tweak the existing offering by introducing
optional riders instead of increasing base coverage. This allowed us to lower the upfront cost
while still offering flexibility for customers who wanted additional features. Working closely with
both teams ensured that the solution was financially viable and marketable.

Product Knowledge and Market Research:

9. How do you stay updated on new products in the insurance market and identify gaps in your
product portfolio?
I regularly review industry reports, attend webinars, and network with other professionals to stay
updated on emerging trends and new product offerings. Additionally, I conduct competitive
analysis to see what other insurers are offering. By comparing our product portfolio with market
trends, I can identify gaps where we may be lacking features or where there’s an opportunity to
introduce new products that address customer needs.
10. Can you suggest a way to improve our current group insurance product lineup based on
market trends?
One improvement could be adding wellness programs or preventive health initiatives as part of the
group insurance package. With the growing focus on health and well-being, offering value-added
services like telemedicine or health assessments can attract more customers. This would not only
 make the product more appealing but could also reduce claims by promoting healthier lifestyles
among policyholders.
11. What product features do you think are critical in group term life and group credit life
policies?
Critical features for group term life include flexibility in coverage amounts, portability (if
employees leave the group), and affordable premiums. For group credit life, the key features are
loan-specific coverage, easy integration with lenders, and declining coverage as the loan is repaid.
Offering optional riders, such as critical illness or accidental death benefits, can also enhance the
appeal of both products.

Profitability and Metrics:

12. How would you analyze the financial performance of a group insurance product? What key
metrics would you focus on?
I would start by reviewing the loss ratio to understand claims versus premiums. The combined
ratio (including administrative expenses) would give a broader view of the product’s profitability.
I’d also focus on renewal rates and customer satisfaction scores to ensure that the product isn’t
just profitable but also sustainable in the long term. Regular analysis of these metrics allows for
adjustments in pricing or features to maintain profitability.
13. What steps would you take if the profitability of a particular group scheme was declining?
First, I would analyze the root cause – whether it’s due to increased claims, higher expenses, or
market competition. Depending on the findings, I might recommend adjusting premiums, revising
coverage terms, or introducing optional features to control costs. If the issue is related to customer
retention, I would consider enhancing customer service or adding value to the product to improve
renewals.

Problem-Solving and Decision-Making:

14. How would you handle a scenario where a product you are responsible for is not competitive
in the market?
I would first assess why the product is not competitive. Is it due to pricing, features, or a lack of
awareness? If it's a pricing issue, I would explore cost-cutting measures or value-added features
that could justify a premium price. If it’s feature-related, I’d consider product enhancement.
Additionally, I’d work closely with the marketing and sales teams to reposition the product more
effectively to appeal to the target market.
15. Describe a challenging situation where you had to make a difficult pricing decision. What
was the outcome?
In one case, we were facing a dilemma of increasing premiums to cover rising claims costs,
knowing this could lead to customer dissatisfaction. After analyzing claims trends, I decided to
increase premiums for high-risk groups while maintaining the current rates for lower-risk
segments. This approach helped protect profitability without losing significant market share, and
the sales team was able to explain the targeted changes to customers effectively.

Training and Internal Collaboration:

16. How would you go about training internal teams on the features of group credit life and
group term schemes?
I would design a training program that breaks down each product feature into simple, relatable
scenarios. I’d use case studies to illustrate how the products work and provide role-playing
exercises to simulate real customer interactions. Additionally, I’d create visual aids, like product
 comparison charts, to help team members understand the key differences and advantages of each
scheme.
17. How would you collaborate with internal departments like underwriting or compliance to
ensure the product is both compliant and competitive?
I would schedule regular meetings with the underwriting and compliance teams to discuss product
updates, regulatory changes, and emerging risks. Collaboration is key to ensuring that the product
remains both compliant and financially sound. By maintaining open communication, we can
quickly address any potential issues, like regulatory changes, that could affect pricing or product
features, ensuring that we remain competitive in the market.

Behavioral Questions:

18. Tell me about a time when you had to manage conflicting priorities between the sales team
and your pricing objectives. How did you handle it?
In one instance, the sales team was pushing for lower premiums to win more business, while my
pricing model showed that this would lead to unsustainable loss ratios. I organized a meeting with
the sales and finance teams to present the data and demonstrate the long-term impact of
underpricing. Together, we agreed on a compromise where certain low-risk segments received a
small discount, while the rest maintained the original pricing. This allowed the sales team to
remain competitive without compromising profitability.
19. Describe a time when you identified a gap in your company's product offerings. How did
you address it?
I noticed that our company lacked a customizable group insurance plan for small businesses. After
conducting market research, I proposed a modular product that allowed small businesses to select
only the coverage options they needed. This new product filled the gap, and after launching,
TAX
Q-2. Give some insight on Income Tax.
➤ This question is the basis of an income tax interview round. Income tax is levied by the government on the
incomes earned by individuals to carry out public expenditures or outlays to realize the goal of social security. The
tax is charged for the assessment year at the rates fixed by the Central Government in the Union Budget for the
assessment year concerning the previous year.
Q-3. How is the Income Tax calculated?
➤ Income Tax is calculated based on the total income of an individual related to salaries, profits of businesses,
capital gains, house property, and other resources. The income tax is calculated using the tax slab that has been
issued by the government every financial year.
Q-4. What do you mean by the term Total Income?
➤ The amount on which Income Tax is paid including all income that arises, accrues, received, or earned in India is
the Total Income. It doesn’t include the income which arises outside the country. It is the total amount that is earned
by an individual or an organization including income from providing services or employment, payments from
pension plans, income from dividends, and revenue from sales.
The total income is calculated for the assessment of taxes, determining an individual’s or organization’s ability to
make payments on a debt, or evaluating the net worth of a company.
Q-5. What is the Financial Year, Previous Year, and Assessment Year?
➤ The year starting from 1st April to 31st March is the Financial Year. It is used for calculating various financial
assessment statements annually in businesses and organizations.
The year immediately succeeding the financial year where the income of the previous financial year is assessed is
known as the Assessment Year. For collecting tax the Government uses the assessment year to assess the previous
year.
The year in which income is earned and becomes taxable in the following assessment year is known as the Previous
Year. Example: 2020-2021 be the present assessment year then 2019-2020 will be the Previous Year.
Q-6. What do you mean by Assesses?
➤ A person who is liable to pay tax or any other sum of money under the Income Tax Act is known as an assessor.
It includes everyone about any proceeding under this Act that has been taken for the assessment of his income or of
the income of the other person in respect of whom he is assessable, or any loss sustained by him or by such other
person, or of the amount refunded due to him or to such other person, and also a person who is considered to be an
assessee under any provision of this Act.
Q-7. How to decide the residential status of profits or income taxpayers?
➤ According to the provisions of the Income Tax Act, the residential status of an individual is categorized as
Resident or Non-Resident.
So under Section 6(1), an individual is said to be a resident of India in any previous year if he satisfies any one of
the basic conditions i.e, he is in India in the previous year for a period that is at least 182 days or he is in India for a
period of a minimum of 60 days during the relevant previous year and at least for 365 days during the four years
preceding that of the previous year.

If any person doesn’t fulfill this provision irrespective of their nationality they are termed as Non-resident.
Q-8. How does the tax liability of an individual get affected because of his residential status?
➤ The liabilities of a private do get affected thanks to his residential status as per Section 5 of the tax Act and is
additionally hooked into the place and time of receipt of the income. There’s a difference between Indian income
and Foreign income as Indian income is always taxable in India by the residential status of the individual paying
the tax.
Q-9. What is Indian Income?
➤ Indian income is the income received or deemed to be received in India during the previous year and
simultaneously accrual income or deemed accrual in India during the previous year. It is also the income received
or deemed to be received in India during the previous year but it accrues outside India during the previous year, or
the Income that has been received outside India during the previous year but has been accrued in India during the
previous year is also termed as Indian income.
Q-10. Which income can be considered as an accrued income?
➤ The income which is earned but has not been received is known as accrued income. The income needs to be
recorded in the same accounting period in which it is earned nor in the future period in which it will be received.
Q-11. What do you understand about Fringe Benefits Tax?
➤ Fringe Benefits Tax is the tax that an employer has to pay in respect of the benefits that are given to his employer
in addition to the salary. It is payable in preference to the value of the fringe benefits provided or to have been
provided by the employer to his employees during the previous year.
Q-12. What do you mean by Capital Gain?
➤ The profit that is earned by selling an asset means capital gain. When the asset is being sold the income or the
gain that arises is the difference between the selling price and the actual price in which it was bought. Capital Gain
can be short-term or long-term. If the asset is held for less than a year and is sold then it is termed as a short-term
gain but if the asset is held for more than a year to three years and sold after that then it is termed as a long-term
gain.
Q-13. What is your idea about AMT?
➤ AMT means the Alternative Minimum Tax which uses a different set of rules to calculate the taxable income
after the allowed deductions. This is a way to restrict wealthy taxpayers from tax evasion. It sets a limit for higher
income tax groups on certain benefits and reduces the taxpayer’s regular tax amount. The taxpayer needs to pay a
higher AMT amount if the benefits on tax reduce the total tax below the AMT limit.
Q-14. Is there any provision in India to get a refund for an overpayment of taxes?
➤ Yes, there is a provision for getting a refund for an overpayment of tax in India along with interest. While
claiming the refund one must file the income tax return within a specific period. The refund status can be tracked
on the NSDL-TIN website by entering PAN and the year of assessment for which the refund has been claimed at
the Status of Tax Refunds tab.
Q-15. What do you mean by the ICR process and how does it help?
➤ ICR means the Inter-Company Reconciliation process helps the parent company to split from its subsidiary
companies by its location. Every year the businesses that are commonly controlled need to prepare a consolidated
financial statement for tax and reporting purposes. This process helps in the maintenance of accurate reports and
also helps the companies avoid misinterpretation of the financial position of the firm.
Check out the best certification course for Income Tax Specialists.
Q-16. What is a Provident Fund? What are its types?
➤ Provident Fund is a government-managed scheme where both employer and employee contribute from the
employee’s salary. There are four types of Provident Funds:

Recognized Provident Fund – RPF is a scheme that must be approved by the Income Tax Commissioner and
applies to an organization that employs a minimum of 20 or more employees.
Unrecognized Provident Fund – URPF is not approved by the Income Tax Commissioner and is started by the
employers and employees in an establishment.
Statutory Provident Fund – SPF is mainly meant for Educational Institutes (affiliated to University) employees.
Public Provident Fund – PPF involves a minimum contribution of Rs.500 p.a and a maximum contribution is Rs.
100,000 p.a. The contribution made along with interest earned is repayable after 15 years unless it is extended.
Q-17. What do you mean by Excise Duty?
➤ An indirect tax is levied on the goods which have been manufactured in India and are meant for personal use.
The taxable person is the manufacturer and the liability of the excise duty arises on the goods manufactured. This
tax is paid by the manufacturer and passes to the customers.
Q-18. What is Service tax?
➤ An indirect tax that is imposed on the service providers by the government on certain services but is paid by the
customers is service tax. Services like AC restaurant services, hotels, and inns are included in the service tax.
Q-19. What is an Excise tax and how it is different from a Service tax?
➤ Excise tax is also an indirect tax that is imposed on the manufacturer, sale, or use of certain types of goods or
products. It is generally imposed on goods such as cigarettes or alcohol, and also on the price of activities like
gambling. Excise taxes can be imposed by both the Federal and State authorities. It is different from service tax
because it is imposed on manufactured goods whereas service tax is imposed on services provided.
Q-20. What happens if an NRI buys a property in India, does he need to pay property tax?
➤ Any kind of income or capital gain that an NRI generates from the sale rent or lease of a valued property or an
asset based in India needs to pay tax as per the Income Tax Plus rules. The long-term capital gain will be incurred
on the sale of the property if the valued property is more than 3 years old, the tax is payable at 20%.
Q-21. What is deferred tax liability? What items come under deferred tax liability?
➤ The tax liability that a company owes and does not pay at the current point, but is responsible for paying it at
some point shortly is termed deferred tax liability. It is a balance sheet item that accounts for the difference between
taxes that are due in the future and the taxes paid today.
Unrealized tax and depreciation are the types of an item that comes under deferred tax liability.
Q-22. What is Amortization?
➤ Amortization means when the assets of a company are written off for several years for their renewal or
replacement and don’t depend on the life of an asset. It is not the same as depreciation.
Q-23. What is a deferred tax asset?
➤ When a firm pays tax early or has paid excess tax and needs to get some money back from the tax authorities is
termed as a deferred tax asset. The term is recorded in the balance sheet and is also known as a provision for future
taxation.
Q-24. What do you mean by the terms Streamlined Sales and Use Tax Agreement?
➤ Both the terms were introduced in 1999 by the National Governor’s Association (NGA) and the National
Conference of State Legislatures (NCSL) to simplify the collection of sales tax. As sales tax is the second-largest
source of state revenue after personal income taxes the collection needed to be simplified.

It resulted in the development of a simpler and business-friendly sales tax system. The Agreement decreased the
costs and administrative burdens of the sales tax collection on retailers, especially those that are operating in
multiple states.
Q-25. What do you mean by Taxation?
➤ Taxation is used as one of the modes by the government to finance their expenses by imposing charges on
corporate entities and citizens. The government levies taxes on its citizens to encourage or discourage certain
economic decisions.
Q-26. What is a Tax refund?
➤ A tax refund means the excess tax paid by an individual than the actual owed by the individual is returned by the
government. Once you file income tax for the year, the income tax, tax deductions or credits, withholdings, and
other factors are taken into consideration; after that, you will receive a tax refund.
Q-27. What is Fund flow?
➤ Fund flow is mainly based on working capital. It tells about the various sources from where the funds are
generated which is very useful in understanding long-term financial strategy. The changes in current assets and
current liabilities are shown through the arrangement of changes in working capital.
Q-28. What is Cash Flow?
➤ Cash flow is mainly based on only one element of the working capital which is cash. It starts with the opening
balance of the cash and closes with the closing balance of the cash. this is very useful for understanding short-term
strategies that affect the liquidity of the business. The changes in current assets and current liabilities are shown in
the cash flow.
Q-29. What do you understand by Commercial Tax?
➤ The tax that is imposed on the scheduled commercial goods and is indirectly collected by the seller or buyer
against his business transactions which now includes sales, entertainment, luxury, entry, and profession is known as
Commercial Tax.
Q-30. What do you mean by transfer income?
➤ When someone retains the ownership of an asset and also makes an agreement to transfer its income, but the
income is considered as his income and will be added to the total income then it is known as transfer income.

Excel
6. What is a Cell Reference?
A cell reference in Excel identifies the location of a cell in the spreadsheet. There are two main types of cell
references in Excel: absolute and relative.
Relative cell references change relative to the position where they are copied. For example, if you have a formula
in cell B2 that references cell A2 (written as =A2), and you copy this formula down to cell B3, the formula in B3
will automatically adjust to reference A3.
Absolute cell references, on the other hand, remain constant, no matter where they are copied. They are denoted by
the $ symbol in front of the column letter and/or the row number, locking the reference to a specific cell. For
instance, if you have a formula in cell B2 referencing cell A2 (=$A$2) and copy this formula to cell B3, the
formula will still reference cell A2.
Mixed cell references combine both absolute and relative references. For example, in =A$2, the column reference
is relative, and the row reference is absolute. If you copy this formula to the right (to C2), it will change to =B$2,
but if you copy it down, it will stay as =A$2.
7. How do you sort the data?
To sort data in Excel, first select the range of cells you want to sort. Click on the "Data" tab in the ribbon at the top
of Excel. Click on the 'Sort' button to open the Sort dialog box. Then, choose "Sort A to Z" for ascending order or
"Sort Z to A" for descending order if sorting alphabetically. You can also choose to apply custom sorting criteria
from the Sort dialog box. Remember to check the "My data has headers" option if your data includes headers to
ensure they are not included in the sorting process.
8. What about filtering?
Filtering data in Excel allows you to display only the rows that meet certain criteria. To apply a filter, click on
the Data tab, then select Filter – dropdown arrows will be added to each column header. Use these dropdown
menus to filter the data.
9. How do you format the data in Excel?
In Excel, data formatting is adjusted using the options in the Home tab, where you can change the font type, size,
color, cell borders, and background color. For numerical data, right-click a cell or range, select Format Cells, and
choose from categories like Number, Currency, Date, or Custom to format the data as desired. Conditional
Formatting, also found in the Home tab, allows you to automatically format cells based on their values, such as
highlighting cells that contain numbers above a certain threshold.
10. How can you identify duplicates?
To identify duplicates in a column in Excel, you can use either Conditional Formatting or the COUNTIF function.
For Conditional Formatting, select the column where you want to identify duplicates, go to the ‘Home’ tab, click on
‘Conditional Formatting’, then ‘Highlight Cell Rules’, and choose ‘Duplicate Values’. In the dialog box, select how
you want the duplicates to be formatted (e.g., with a specific color).
If you choose to use COUNTIF, enter the formula =COUNTIF(A:A, A1)>1 in a new column adjacent to your data
column (assuming your data is in column A), which will return TRUE for duplicate values and FALSE for unique
values. Drag the formula down the column to apply it to all cells, and duplicates will be clearly indicated where the
formula returns TRUE.
11. How do you remove duplicates?
To remove duplicates in Excel, first select the range of data or the entire column where you want to remove
duplicates. Go to the 'Data' tab on the Ribbon, select 'Table Tools' and click on 'Remove Duplicates'. In the dialog
box that appears, specify which columns to check for duplicate information. Click 'OK', and Excel will remove
duplicate rows, keeping only unique records in the selected range.
12. How can you freeze panes in Excel?
To freeze panes in Excel, ensure that certain rows or columns remain visible as you scroll through your
spreadsheet. First place your cursor in the cell immediately to the right of the column and below the row you want
to freeze. Go to the 'View' tab on the Ribbon, and in the 'Window' group, click on 'Freeze Panes'. From the drop-
down menu, select 'Freeze Panes' to freeze the rows above and columns to the left of your selected cell. This feature
is particularly useful for keeping headers visible while scrolling through large datasets.
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Intermediate Excel Interview Questions
If you’re a more experienced Excel practitioner, you’ll be expected to have more of a grasp of functions and be able
to analyze data. Check out our Analysis in Excel course and Intermediate Spreadsheets course to refresh on
some of the key points.
13. What's the difference between SUM, SUMIF, and SUMIFS?
In Excel, SUM, SUMIF, and SUMIFS are functions used to calculate the sum of a range of cells, but they differ in
their calculation approaches.
The SUM function simply adds up all the numbers in the specified range. Example: =SUM(A1:A10) will add all
the numbers from cells A1 to A10.
SUMIF adds up cells that meet a single specified criterion. Example: =SUMIF(A1:A10, ">5") will sum all
numbers greater than 5 in the range A1 to A10.
SUMIFS is an extension of SUMIF and allows for multiple criteria. Example: =SUMIFS(A1:A10, B1:B10, "X",
C1:C10, ">5") will sum all numbers in the range A1 to A10 where the corresponding cells in range B1 to B10 equal
"X" and those in C1 to C10 are greater than 5.
14. What's the difference between COUNT, COUNTA, COUNTBLANK, and COUNTIF?
In Excel, COUNT, COUNTA, COUNTBLANK, and COUNTIF are functions used for counting cells in a range,
but each serves a different purpose.
The COUNT function counts the number of cells in a range that contain numbers. It ignores empty cells, text, or
other non-numeric values. Example: =COUNT(A1:A10) will count only the cells in the range A1 to A10 that
contain numbers.
COUNTA counts the number of non-empty cells in a range, regardless of the cell's content (numbers, text, or other
types). Example: =COUNTA(A1:A10) will count all cells in the range A1 to A10 that are not empty.
COUNTBLANK specifically counts the number of empty cells in a given range.
Example: =COUNTBLANK(A1:A10) will count the number of empty cells in the range A1 to A10.
COUNTIF counts the number of cells in a range that meet a specified criterion. Example: =COUNTIF(A1:A10,
">5") will count the number of cells in the range A1 to A10 that contain numbers greater than 5.

15. What's the difference between SUBSTITUTE and REPLACE?

In Excel, both SUBSTITUTE and REPLACE are text functions used to modify string contents, but the string
replacement methods are different.
The SUBSTITUTE function replaces specified occurrences of a text string with another text string.
It is particularly useful when you need to replace specific text within a string and can be used to replace all
occurrences or just a specific instance. Example: =SUBSTITUTE("Hello World", "World", "Excel") will change
"Hello World" to "Hello Excel". You can also specify which occurrence of "World" to replace if it appears multiple
times.
The REPLACE function, on the other hand, substitutes part of a text string based on its position and the number of
characters associated with the string. Example: =REPLACE("Hello World", 7, 5, "Excel") starts at the 7th character
(W), replaces 5 characters ("World") with "Excel", also resulting in "Hello Excel".
16. What is a VLOOKUP? When is it useful?
VLOOKUP, short for Vertical Lookup, is a function in Excel used for searching for a specific value in one column
and retrieving a corresponding value from another column in the same row. It's particularly useful in scenarios
where you need to find and extract data from large tables or datasets.
The basic syntax is VLOOKUP(lookup_value, table_array, col_index_num, [range_lookup]),
where lookup_value is the value you're searching for, table_array is the range containing the
value, col_index_num is the column number in the range containing the return value, and [range_lookup] is an
optional argument where TRUE, or 1, finds an approximate match (default) and FALSE, or 0, finds an exact match.
Example: We're interested in returning the employee name (see mapping table E1:F11, where column E stores the
employee ID and column F stores the employee name) based on the employee ID found in column
A. =VLOOKUP(A2,$E$2:$F$11,2,0) will return "Sue", in the example below.
17. How do you create a pivot table?
To create a Pivot Table in Excel, first select the data range you want to analyze. Next, go to the "Insert" tab on the
ribbon and click on "PivotTable." In the dialog box that appears, choose where you want the Pivot Table to be
placed (new worksheet or existing worksheet). After clicking "OK," the PivotTable Field List pane will appear,
where you can drag fields to the different areas (Rows, Columns, Values, and Filters) to organize your data.
18. How do you create a named range?
To create a named range in Excel, first select the cell or range of cells you want to name. Click on the "Formulas"
tab in the ribbon. Then click on "Define Name" in the "Defined Names" group. In the "New Name" dialog box,
enter a name for your range in the "Name" field, and specify the scope and cell reference if needed. Finally, click
"OK" to create the named range.
19. How do you protect a Workbook?
To protect an entire workbook in Excel, navigate to Tools > Protection > Protect Workbook. Enter a password in
the dialog box that appears, and then re-enter it when prompted for confirmation. This will encrypt the workbook,
requiring the password to open it in the future.
Advanced Excel Interview Questions
This last set of questions is for more advanced users of Excel, those who have a lot of experience using the tool for
a variety of purposes.

20. What's the benefit of using INDEX-MATCH instead of VLOOKUP?

Using INDEX-MATCH in Excel instead of VLOOKUP offers several advantages: it provides greater flexibility,
as it can return a value in a column to the left of the lookup column, unlike VLOOKUP, which only works left-to-
right. INDEX-MATCH is also more efficient in processing, especially for large datasets, as it only looks at specific
columns rather than the entire row. It's less prone to errors when columns are added or deleted, since INDEX-
MATCH uses column references that don't change with column modifications.
21. How do you create a drop-down list from a data validation?
To create a drop-down list in Excel using data validation, first select the cell or cells where you want the drop-
down list to appear. Then, go to the "Data" tab on the ribbon and click on "Validation". In the Data Validation
dialog box, under the "Settings" tab, select "List" from the "Allow:" dropdown menu.
In the "Source:" box, either type in the list items separated by commas, or click the up arrow button to select a
range of cells containing the items you want in your list. Ensure that the "In-cell dropdown" box is checked. Click
"OK" to apply the data validation and create your drop-down list.
22. Can you extract the domain name from an email address?
Assume the email address is [email protected] in cell A1. Enter the following formula in another cell (e.g.,
B1): =RIGHT(A1, LEN(A1) - FIND("@", A1)), which will yield email.com.
 FIND("@", A1) locates the position of the "@" character in the email address.
 LEN(A1) calculates the total length of the email address.
 Subtracting the position of "@" from the total length gives us the length of the domain part.
 Finally, RIGHT(A1, LEN(A1) - FIND("@", A1)) extracts the domain part from the right side of the email
address.
23. What are wildcards in Excel? How do you apply them?
In Excel, wildcards are special characters used in text searches and functions to represent one or more characters,
allowing for more flexible and powerful searching and matching.
The three main wildcards are the asterisk (*), which represents any number of characters, the question mark (?),
which represents a single character, and the tilde (~), which is used to escape wildcard characters.
You can use wildcards in various Excel functions like SEARCH, FIND, REPLACE, SUBSTITUTE, and in
features like filters or conditional formatting. For example, using =COUNTIF(A1:A10, "*test*") will count all cells
in the range A1 to A10 that contain the word "test" anywhere in the text.
24. Can you apply a slicer to filter the data?
To apply a slicer to filter data in Excel, first, ensure your data is formatted as a table or is part of a PivotTable. Click
anywhere inside the table or PivotTable, then go to the ‘Insert’ tab on the Ribbon and click on ‘Slicer’ in the Filters
group. In the dialog box that appears, select the checkbox for the column(s) you want to use for slicing, and then
click ‘OK’. A slicer will appear in your worksheet, which you can use to filter the data in the table or PivotTable by
simply clicking on the various options in the slicer.
25. What is Goal Seek?
Goal Seek in Excel is a tool that allows you to find the input value needed to achieve a specific goal or target in a
formula. It works by adjusting a single input value to make the formula result match the desired outcome. You can
access Goal Seek from the "Data" tab, under the "What-If Analysis" button, where you specify the cell with the
formula, the target value, and the cell to change to achieve this target. In the example below, we want to know what
interest rate we'd pay if we made monthly payments of $900 over a period of 15 years on a $100,000 loan. Goal
Seek can help us figure it out!