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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of IRDA and its Licensing Functions. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

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IRDA and its Licensing Functions MCQs | Page 18 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q171.
What is the responsibility of a licensed surveyor and loss assessor regarding submission of returns?

a.

Submit returns only if requested by the insured

b.

Submit returns annually as specified in the Schedule to the regulations

c.

Submit returns only if there is a complaint against them

d.

Submit returns at their discretion

Discuss
Answer: (b).Submit returns annually as specified in the Schedule to the regulations Explanation:Every licensed surveyor and loss assessor shall submit an annual statement as specified in the Schedule to these regulations.
Q172.
What authority does the IRDA have regarding inspection of survey work and books of surveyors and loss assessors?

a.

No authority

b.

Limited authority

c.

Authority to appoint one or more persons as inspecting authority

d.

Authority to investigate claims only

Discuss
Answer: (c).Authority to appoint one or more persons as inspecting authority Explanation:The IRDA has the authority to appoint one or more persons as inspecting authority to undertake inspection of survey work, books, records, and documents, or to investigate any bona fide complaint received against a surveyor and loss assessor. The inspecting authority shall submit an inspection report to the Authority.
Q173.
What is a "Composite Insurance Agent"?

a.

An agent specializing in life insurance

b.

An agent specializing in general insurance

c.

An agent holding a license for both life and general insurance

d.

An agent with multiple licenses for various insurance products

Discuss
Answer: (c).An agent holding a license for both life and general insurance Explanation:A "Composite Insurance Agent" is an insurance agent who holds a license to act as an insurance agent for both a life insurer and a general insurer.
Q174.
What is the minimum qualification required to become an insurance agent in areas with a population of 5,000 people or more?

a.

10th standard

b.

12th standard

c.

Graduate degree

d.

No minimum qualification required

Discuss
Answer: (b).12th standard Explanation:The minimum qualification required for becoming an insurance agent in areas with a population of 5,000 people or more is a pass in the 12th standard.
Q175.
What functions are included in the scope of brokers that go beyond corporate or individual agents?

a.

Selling insurance policies

b.

Maintaining records, risk management, and consultancy

c.

Underwriting policies

d.

Conducting claim settlements

Discuss
Answer: (b).Maintaining records, risk management, and consultancy Explanation:The functions of brokers go beyond those of corporate or individual agents and include maintaining records, risk management, and consultancy.
Q176.
What is the minimum capital requirement for a direct broker, reinsurance broker, and composite broker?

a.

Direct broker: 50 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 250 lakhs

b.

Direct broker: 200 lakhs, Reinsurance broker: 50 lakhs, Composite broker: 250 lakhs

c.

Direct broker: 250 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 50 lakhs

d.

No minimum capital requirement for any type of broker

Discuss
Answer: (a).Direct broker: 50 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 250 lakhs Explanation:The minimum capital requirement for a direct broker is 50 lakhs, for a reinsurance broker is 200 lakhs, and for a composite broker is 250 lakhs.
Q177.
How long is a license issued to an insurance agent valid?

a.

1 year

b.

2 years

c.

3 years

d.

5 years

Discuss
Answer: (c).3 years Explanation:A license issued to an insurance agent is valid for 3 years.
Q178.
Is there a ceiling on the proportion of business that insurance brokers and corporate agents can obtain from a single organization or person?

a.

Yes, there is a ceiling

b.

No, there is no ceiling

c.

Ceiling applies only to insurance brokers

d.

Ceiling applies only to corporate agents

Discuss
Answer: (a).Yes, there is a ceiling Explanation:There is a ceiling on the proportion of business that insurance brokers and corporate agents can obtain from a single organization or person. No such ceilings are applicable for individual agents.
Q179.
Which entities are required to maintain an "Insurance Bank Account' and a professional indemnity insurance cover?

a.

Only insurance brokers

b.

Only life insurers

c.

Both insurance brokers and life insurers

d.

Only general insurers

Discuss
Answer: (a).Only insurance brokers Explanation:Only insurance brokers are required to maintain an "Insurance Bank Account" and a professional indemnity insurance cover.
Q180.
Is it mandatory for every life insurer operating in India to have a programme of reinsurance for lives covered by them?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't say

Discuss
Answer: (a).Yes Explanation:Yes, it is mandatory for every life insurer operating in India to have a programme of reinsurance in respect of lives covered by them.
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