Question

When is it necessary to establish insurable interest according to KYC norms?

a.

When the insurance premium is paid by the person insured

b.

When the insurance premium is paid by persons other than the person insured

c.

When the insurance premium exceeds a certain threshold

d.

When the insurance policy is for a high-risk customer

Answer: (b).When the insurance premium is paid by persons other than the person insured Explanation:KYC norms in insurance require establishing insurable interest when the insurance premium is paid by persons other than the person insured. This ensures that there is a legitimate reason for the insurance coverage and helps prevent fraudulent activities.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. When is it necessary to establish insurable interest according to KYC norms?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How should payments be made according to KYC norms in insurance?

Q. What should attract more attention and detailed checks from an Anti-Money Laundering (AML) perspective in insurance?

Q. What should insurers be cautious about regarding payments on insurance contracts according to KYC norms?

Q. How does the insurance business compare to other participants in the financial sector in terms of vulnerability to money laundering?

Q. What are some enabling features of insurance contracts that can be misused for money laundering purposes?

Q. What responsibility do insurance companies have regarding anti-money laundering (AML) programs according to IRDA guidelines?

Q. What is the role of the senior level officer appointed by insurance companies in implementing AML programs?

Q. Why are restrictions placed on acceptance of cash beyond Rs. 50,000 in premium or proposal deposit remittances in the insurance sector?

Q. What is the purpose of setting up Financial Intelligence Units (FIUs) in various jurisdictions?

Q. What is the obligation of financial institutions regarding reporting to the Financial Intelligence Unit in India (FIU-IND)?

Q. How long are records of transactions reported to the FIU required to be retained by insurance companies?

Q. What are the record-keeping requirements for customer identification data according to AML guidelines?

Q. Why is it important for insurance companies to have adequate screening procedures when hiring employees and agents?

Q. What is the role of employees and agents in effective compliance with Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) programs?

Q. Why is it important for employees and agents to be properly trained on AML/CFT?

Q. How are premiums typically collected by insurance companies in India?

Q. What is premium in the context of insurance?

Q. When is the premium typically paid by the insured?

Q. What factors generally influence the insurance premium?

Q. According to IRDA regulations, what are the approved methods for premium payment?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 14 Regulations of Insurance Business? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!