IRDA and its Licensing Functions MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on IRDA and its Licensing Functions, 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 and its Licensing Functions 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 and its Licensing Functions mcq questions that explore various aspects of IRDA and its Licensing Functions problems. Each MCQ is crafted to challenge your understanding of IRDA and its Licensing Functions 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 and its Licensing Functions MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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IRDA and its Licensing Functions MCQs | Page 16 of 20

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Q151.
What criteria does the IRDA consider for granting a license to corporate surveyors and loss assessors?

a.

The financial strength of the company.

b.

The number of employees in the company.

c.

Qualifications of directors or partners and absence of disqualifications.

d.

The market share of the company.

Discuss
Answer: (c).Qualifications of directors or partners and absence of disqualifications. Explanation:The IRDA considers that all directors or partners of a company or firm possess one or more of the qualifications specified in the Act and none of them suffers from any disqualifications mentioned in the Act for granting a license.
Q152.
What is the renewal procedure for an insurance surveyor and loss assessor's license?

a.

Automatic renewal without an application process.

b.

Renewal application must be submitted at least fifteen days before expiry.

c.

Renewal application must be submitted at least thirty days before expiry.

d.

Renewal is not allowed; a new license must be obtained.

Discuss
Answer: (c).Renewal application must be submitted at least thirty days before expiry. Explanation:An insurance surveyor and loss assessor must apply for license renewal at least thirty days before the expiry of the current license. Applications may be accepted within six months of expiry with a penalty of seven hundred and fifty rupees.
Q153.
How long is a renewed license valid from the date of renewal, unless cancelled earlier?

a.

One year.

b.

Three years.

c.

Five years.

d.

Ten years.

Discuss
Answer: (c).Five years. Explanation:A license renewed after the application process is valid for five years from the date of renewal unless cancelled earlier by the IRDA.
Q154.
Under what conditions can a license not renewed be revalidated?

a.

After six months from the date of expiry.

b.

After one year from the date of expiry.

c.

After three years from the date of expiry.

d.

It cannot be revalidated; a new license must be obtained.

Discuss
Answer: (d).It cannot be revalidated; a new license must be obtained. Explanation:A license not renewed cannot be revalidated and must be obtained as a new case.
Q155.
What certifications are required while applying for the renewal of a license?

a.

Financial statements of the company.

b.

Certification of market performance.

c.

Certification of compliance with the Code of Conduct and professional duties.

d.

Certification of the number of clients served.

Discuss
Answer: (c).Certification of compliance with the Code of Conduct and professional duties. Explanation:While applying for the renewal of a license, the applicant must certify to the IRDA that they have complied with the Code of Conduct, discharged professional duties, and meet other specified criteria.
Q156.
What is the primary responsibility of a surveyor and loss assessor when dealing with losses?

a.

Prioritize the insurer's interests over the insured's.

b.

Investigate, manage, quantify, validate, and deal with losses arising from any contingency.

c.

Ensure quick claim settlements without thorough investigations.

d.

Avoid reporting losses that are not covered by insurance policies.

Discuss
Answer: (b).Investigate, manage, quantify, validate, and deal with losses arising from any contingency. Explanation:The primary responsibility of a surveyor and loss assessor is to investigate, manage, quantify, validate, and deal with losses arising from any contingency.
Q157.
What code of conduct is a surveyor and loss assessor expected to strictly adhere to?

a.

Code of Business Conduct.

b.

Professional Ethics Code.

c.

Corporate Code of Ethics.

d.

Code of Consumer Rights.

Discuss
Answer: (b).Professional Ethics Code. Explanation:A surveyor and loss assessor are expected to adhere strictly to the Professional Ethics Code in the performance of their duties.
Q158.
In the context of surveying and loss assessment, what should a surveyor declare regarding any interest in the subject-matter?

a.

Interests must be declared only if they directly benefit the surveyor.

b.

No declaration is required.

c.

Declare whether there is any interest in the subject-matter or if it pertains to relatives, business partners, or through material shareholding.

d.

Interests need to be declared only if they are related to the insured party.

Discuss
Answer: (c).Declare whether there is any interest in the subject-matter or if it pertains to relatives, business partners, or through material shareholding. Explanation:A surveyor should declare whether they have any interest in the subject-matter or if it pertains to relatives, business partners, or through material shareholding.
Q159.
What duty does a surveyor have regarding confidentiality and neutrality when dealing with losses?

a.

Prioritize the insurer's interests over the insured's.

b.

Maintain confidentiality and neutrality without jeopardizing the liability of the insurer and claim of the insured.

c.

Disclose all information to the insured without any restrictions.

d.

Act in favor of the insured party even if it compromises the insurer's interests.

Discuss
Answer: (b).Maintain confidentiality and neutrality without jeopardizing the liability of the insurer and claim of the insured. Explanation:A surveyor should maintain confidentiality and neutrality without jeopardizing the liability of the insurer and claim of the insured.
Q160.
What responsibility does a surveyor have in relation to the causes and circumstances of the loss?

a.

Ignore the causes and circumstances.

b.

Examine, inquire, investigate, verify, and check upon the causes and circumstances of the loss.

c.

Focus only on the extent of the loss.

d.

Rely solely on the information provided by the insured.

Discuss
Answer: (b).Examine, inquire, investigate, verify, and check upon the causes and circumstances of the loss. Explanation:A surveyor should examine, inquire, investigate, verify, and check upon the causes and circumstances of the loss, including the extent of loss, nature of ownership, and insurable interest.
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