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 7 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q61.
Which of the following is not an objective of IRDA?

a.

To protect the interest of and secure fair treatment to policyholders.

b.

To consolidate the various laws existing at that time and amend the law relating to the business of insurance.

c.

To ensure that insurance customers receive precise, clear and correct information about products and services and make them aware of their responsibilities and duties in this regard.

d.

To ensure speedy settlement of genuine claims, to prevent insurance fraud and other malpractices and put in place effective grievance redressal machinery.

Discuss
Answer: (b).To consolidate the various laws existing at that time and amend the law relating to the business of insurance. Explanation:The Preamble to the Insurance Act, 1938 mentions that the aim of the Act is to consolidate (the various laws existing at that time) and amend the law relating to the business of insurance.
Q62.
Which of the following is a duty of the IRDA?

i. Protection of the interests of the policyholders in matters concerning assigning of policy, nomination by policyholders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance.
ii. Specifying requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents.
iii. Specifying the code of conduct for surveyors and loss assessors.

a.

Only i. and ii.

b.

Only ii. and iii.

c.

All of the above

d.

None of the above.

Discuss
Answer: (c).All of the above Explanation:All are the duties of IRDA according to Section 14 of the IRDA Act.
Q63.
Which of the following is not among the Insurance Councils mentioned in Section 64C of the Insurance Act, 1938?

i. The Life Insurance Council of India
ii. The Health Insurance Council of India
iii. The General Insurance Council of India

a.

Only i and iii

b.

Only ii

c.

All of the above

d.

None of the above

Discuss
Answer: (b).Only ii Explanation:Section 64C of the Insurance Act, 1938 provides for two Insurance Councils in India. They are: 1. The Life Insurance Council: it consists of all the members and associate members of the Association who carry on life insurance business in India. 2. The General Insurance Council: it consists of all the members and associate members of the Association who carry on general insurance business in India.
Q64.
Choose the correct option to fill in the blank.

The duration of the Executive Committee of the Life Insurance Council or the General Insurance Council is ________ years from the date of its first meeting.

a.

One

b.

Two

c.

Three

d.

Four

Discuss
Answer: (c).Three Explanation:The duration of the Executive Committee of the Life Insurance Council or the General Insurance Council is three years from the date of its first meeting, on the expiry of which the Executive Committee is dissolved and a new Executive Committee is constituted.
Q65.
What financial relationship exists between the insured and the insurer in the context of insurance?

a.

Lender-borrower relationship

b.

Customer-service provider relationship

c.

Delicate financial relationship

d.

Collaborative partnership

Discuss
Answer: (c).Delicate financial relationship Explanation:There is a delicate financial relationship between the insured and the insurer in the context of insurance.
Q66.
What does an insurer agree to do in exchange for payments from the insured?

a.

Sell financial products

b.

Provide defined services

c.

Reimburse losses on covered events

d.

Invest in premium markets

Discuss
Answer: (c).Reimburse losses on covered events Explanation:An insurer agrees to reimburse losses of the insured on the occurrence of specific events covered in the insurance policy.
Q67.
What is premium in the context of insurance?

a.

Compensation paid by the insurer

b.

Consideration paid by the insured

c.

Financial loss of the insurer

d.

Defined amount of money provided by the insured

Discuss
Answer: (b).Consideration paid by the insured Explanation:Premium is the consideration paid by the insured to the insurer in the context of insurance.
Q68.
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.
Q69.
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.
Q70.
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.
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