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 8 of 12

Discover more Topics under IC 14 Regulations of Insurance Business

Q71.
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.
Q72.
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.
Q73.
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.
Q74.
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.
Q75.
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.
Q76.
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.
Q77.
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.
Q78.
What is the role of IRDA in the context of insurance business in India?

a.

To provide insurance coverage to the public

b.

To promote competition among insurers

c.

To regulate and oversee the insurance industry

d.

To sell insurance policies directly to consumers

Discuss
Answer: (c).To regulate and oversee the insurance industry Explanation:IRDA is the regulator of insurance business in India, indicating its role in regulating and overseeing the insurance industry.
Q79.
What are the objectives of the Life Insurance Council's Executive Committee?

a.

To maximize profits for life insurance companies

b.

To aid, advise, and assist insurers carrying on life insurance business

c.

To solely focus on promoting the growth of the life insurance industry

d.

To control and restrict life insurance business in India

Discuss
Answer: (b).To aid, advise, and assist insurers carrying on life insurance business Explanation:The objectives of the Executive Committee of the Life Insurance Council include aiding, advising, and assisting insurers carrying on life insurance business.
Q80.
What is the main function of the Insurance Association of India?

a.

To sell insurance policies to the public

b.

To provide financial support to insurers

c.

To establish standards of conduct in the insurance industry

d.

To control and restrict the activities of insurers

Discuss
Answer: (c).To establish standards of conduct in the insurance industry Explanation:The Insurance Association of India consists of members and associate members, and its main function is to set up standards of conduct and sound practice in the insurance industry.
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