IRDA Functions and Insurance Councils MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on IRDA Functions and Insurance Councils, a fundamental topic in the field of IC 14 Regulations of Insurance Business. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our IRDA Functions and Insurance Councils MCQs are designed to help you grasp the core concepts and excel in solving problems.

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IRDA Functions and Insurance Councils MCQs | Page 10 of 12

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Q91.
As per Section 64H(1) of the Insurance Act, 1938, how long is the duration of the Executive Committee of the Life Insurance Council or the General Insurance Council from the date of its first meeting?

a.

Two years

b.

Three years

c.

Four years

d.

Five years

Discuss
Answer: (b).Three years Explanation:According to Section 64H(1), the duration of the Executive Committee of the Life Insurance Council or the General Insurance Council shall be three years from the date of its first meeting.
Q92.
As per Section 64H(2) of the Insurance Act, 1938, what happens to the out-going members of the dissolved Executive Committee after the new Executive Committee is constituted?

a.

They vacate their positions immediately

b.

They continue to hold office and discharge prescribed duties until a new Executive Committee is formed

c.

They are appointed as honorary members

d.

They are disqualified from further participation in insurance-related activities

Discuss
Answer: (b).They continue to hold office and discharge prescribed duties until a new Executive Committee is formed Explanation:According to Section 64H(2), notwithstanding the dissolution of the Executive Committee, the out-going members continue to hold office and discharge such administrative and other duties as may be prescribed until such time as a new Executive Committee is constituted.
Q93.
According to Section 64J of the Insurance Act, 1938, what is one of the functions of the Executive Committee of the Life Insurance Council?

a.

Investment management for insurers

b.

Conducting market research

c.

Regulating premium rates

d.

Bringing to the notice of IRDA cases of insurers acting prejudicial to policyholders' interests

Discuss
Answer: (d).Bringing to the notice of IRDA cases of insurers acting prejudicial to policyholders' interests Explanation:According to Section 64J of the Insurance Act, 1938, one of the functions of the Executive Committee of the Life Insurance Council is to bring to the notice of the IRDA the case of any insurer acting in a manner prejudicial to the interests of holders of life insurance policies.
Q94.
What is the maximum duration for which the Executive Committee of the Life Insurance Council or the General Insurance Council can exist, as per Section 64H(1) of the Insurance Act, 1938?

a.

Four years

b.

Five years

c.

Six years

d.

Three years

Discuss
Answer: (d).Three years Explanation:Section 64H(1) stipulates that the duration of the Executive Committee of the Life Insurance Council or the General Insurance Council shall be three years from the date of its first meeting.
Q95.
As per Section 64J of the Insurance Act, 1938, what role does the Executive Committee of the Life Insurance Council play in regulating insurers' conduct?

a.

It determines premium rates

b.

It acts as a judicial body for policyholder complaints

c.

It aids, advises, and assists insurers in setting up standards of conduct and sound practice

d.

It solely focuses on promoting insurers' interests

Discuss
Answer: (c).It aids, advises, and assists insurers in setting up standards of conduct and sound practice Explanation:Section 64J outlines that one of the functions of the Executive Committee of the Life Insurance Council is to aid, advise, and assist insurers in setting up standards of conduct and sound practice.
Q96.
According to Section 64J of the Insurance Act, 1938, what is the Executive Committee of the Life Insurance Council authorized to do with regard to the IRDA?

a.

Approve IRDA policies

b.

Dispute IRDA regulations

c.

Render advice to the IRDA

d.

Control the functioning of the IRDA

Discuss
Answer: (c).Render advice to the IRDA Explanation:Section 64J specifies that the Executive Committee of the Life Insurance Council is authorized to render advice to the IRDA in matters related to controlling the expenses of insurers in their life insurance business in India.
Q97.
What are the functions of the Executive Committee of the General Insurance Council, as per Section 64L of the Insurance Act, 1938?

a.

It determines premium rates for general insurance policies

b.

It aids and advises insurers in setting up standards of conduct and sound practice

c.

It solely focuses on promoting insurers' interests

d.

It oversees the functioning of the IRDA

Discuss
Answer: (b).It aids and advises insurers in setting up standards of conduct and sound practice Explanation:Section 64L outlines that the functions of the Executive Committee of the General Insurance Council include aiding and advising insurers carrying on general insurance business in setting up standards of conduct and sound practice.
Q98.
According to Section 64L of the Insurance Act, 1938, what authority does the Executive Committee of the General Insurance Council have concerning the fees collected for enabling the discharge of its functions?

a.

It can collect fees without any restrictions

b.

It can waive the collection of fees for any year

c.

It has no authority to collect fees

d.

It must obtain approval from the IRDA before collecting fees

Discuss
Answer: (b).It can waive the collection of fees for any year Explanation:Section 64L states that the Executive Committee of the General Insurance Council may, by resolution, waive the collection of prescribed fees for any year, subject to approval by the IRDA.
Q99.
As per Section 64N of the Insurance Act, 1938, what powers do the Executive Committees of the Life Insurance Council and the General Insurance Council have in certain cases?

a.

They can independently make decisions on matters of common interest

b.

They can hold joint meetings and delegate matters to a subcommittee

c.

They have no authority to collaborate on matters of common interest

d.

They can only meet jointly without delegation

Discuss
Answer: (b).They can hold joint meetings and delegate matters to a subcommittee Explanation:Section 64N allows the Executive Committees of the Life Insurance Council and the General Insurance Council to hold joint meetings in prescribed circumstances, and they can delegate matters to a subcommittee during such joint meetings.
Q100.
What is the primary purpose of insurance?

a.

To generate profits for the insurer

b.

To protect the interests of the insured by reimbursing losses

c.

To promote the growth of the insurance industry

d.

To regulate the insurance business in India

Discuss
Answer: (b).To protect the interests of the insured by reimbursing losses Explanation:Insurance is a contract in which the insurer agrees to reimburse the losses of the insured upon the occurrence of a specific event, indicating that the primary purpose is to protect the interests of the insured.
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