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.

In this section, you'll find a wide range of IRDA Functions and Insurance Councils mcq questions that explore various aspects of IRDA Functions and Insurance Councils problems. Each MCQ is crafted to challenge your understanding of IRDA Functions and Insurance Councils principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 14 Regulations of Insurance Business tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our IRDA Functions and Insurance Councils MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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IRDA Functions and Insurance Councils MCQs | Page 3 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q21.
Who is an insured in the insurance context?

a.

A person selling insurance

b.

A company buying insurance policies

c.

A policyholder buying an insurance policy

d.

An insurer providing compensation

Discuss
Answer: (c).A policyholder buying an insurance policy Explanation:An insured (i.e., policyholder) is a person or entity buying the insurance policy.
Q22.
What is the purpose of the Insurance Regulatory and Development Authority (IRDA), as stated in the Preamble of the IRDA Act, 1999?

a.

To maximize profits of insurance companies

b.

To regulate and promote the orderly growth of the insurance industry

c.

To establish a monopoly in the insurance sector

d.

To minimize policyholders' interests

Discuss
Answer: (b).To regulate and promote the orderly growth of the insurance industry Explanation:The purpose of IRDA, as stated in the Preamble, is to regulate, promote, and ensure the orderly growth of the insurance industry.
Q23.
How did the IRDA Act impact existing legislation such as the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalisation) Act, 1972?

a.

It repealed them

b.

It led to amendments in these acts

c.

It had no impact on existing legislation

d.

It created conflicts between acts

Discuss
Answer: (b).It led to amendments in these acts Explanation:The IRDA Act led to amendments in the Insurance Act, 1938, the Life Insurance Corporation Act, 1956, and the General Insurance Business (Nationalisation) Act, 1972.
Q24.
What are the main objectives of the IRDA?

a.

Maximizing profits of insurance companies

b.

Protecting the interest of the insured and promoting orderly growth of the insurance industry

c.

Establishing a monopoly in the insurance sector

d.

Minimizing policyholders' interests

Discuss
Answer: (b).Protecting the interest of the insured and promoting orderly growth of the insurance industry Explanation:The main objectives of IRDA are protecting the interest of the insured (policyholders) and promoting orderly growth of the insurance industry.
Q25.
How is a regulator defined?

a.

A person appointed by insurance companies

b.

An entity responsible for control and supervision of a particular activity

c.

An insurance policyholder

d.

A government official overseeing insurance policies

Discuss
Answer: (b).An entity responsible for control and supervision of a particular activity Explanation:A regulator is defined as an authority responsible for control and supervision of a particular activity.
Q26.
What is the composition of the Insurance Regulatory and Development Authority (IRDA)?

a.

Only a Chairperson

b.

A Chairperson, five whole-time members, and four part-time members

c.

A Chairperson and an unlimited number of members

d.

A Chairperson and two whole-time members

Discuss
Answer: (b).A Chairperson, five whole-time members, and four part-time members Explanation:The composition of IRDA includes a Chairperson, not more than five whole-time members, and not more than four part-time members.
Q27.
How are the members of the IRDA appointed?

a.

By the insurance companies

b.

By the policyholders

c.

By the State Governments

d.

By the Central Government based on knowledge or experience in relevant disciplines

Discuss
Answer: (d).By the Central Government based on knowledge or experience in relevant disciplines Explanation:Members of the IRDA are appointed by the Central Government based on knowledge or experience in relevant disciplines.
Q28.
What are the full-time members of the IRDA?

a.

Member, Claims and Disputes

b.

Member, Risk Assessment

c.

Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments

d.

Member, Marketing and Sales

Discuss
Answer: (c).Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments Explanation:The full-time members of IRDA are Member, Non-life; Member, Life; Member, Actuary; Member, Finance & Investments.
Q29.
Where is IRDA situated, and what is its website address?

a.

Situated in Mumbai, website address: www.irda.in

b.

Situated in Hyderabad, website address: www.irda.gov.in

c.

Situated in Delhi, website address: www.insuranceauthority.in

d.

Situated in Chennai, website address: www.insureindia.com

Discuss
Answer: (b).Situated in Hyderabad, website address: www.irda.gov.in Explanation:IRDA is situated in Hyderabad, and its website address is www.irda.gov.in.
Q30.
What is one of the purposes of forming the IRDA,?

a.

Maximizing profits for insurance companies

b.

Protecting the interest of policyholders and ensuring their fair treatment

c.

Establishing a monopoly in the insurance sector

d.

Minimizing regulations for the insurance industry

Discuss
Answer: (b).Protecting the interest of policyholders and ensuring their fair treatment Explanation:One of the purposes of forming IRDA is to protect the interest of policyholders and ensure their fair treatment.
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