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 2 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q11.
What is the scope of a Composite Corporate Agent's licence?

a.

Acts as an intermediary for both life and general insurance

b.

Holds a licence to act as an insurance agent for multiple insurers

c.

Arranges insurance and reinsurance simultaneously

d.

Holds a licence to act as an insurance agent for both life insurer and general insurer

Discuss
Answer: (d).Holds a licence to act as an insurance agent for both life insurer and general insurer Explanation:A Composite Corporate Agent is an entity holding a licence to act as an insurance agent for both a life insurer and a general insurer.
Q12.
What entities are eligible to obtain an Insurance Broker license according to IRDA regulations?

a.

Proprietor / Proprietary Concern

b.

Partnership Firm

c.

Company under the Companies Act, 1956

d.

Cooperative Society or any other person recognized by the Authority

Discuss
Answer: (a).Proprietor / Proprietary Concern Explanation:The Insurance Broker license can be granted to a proprietor, partnership firm, company under the Companies Act, 1956, a Cooperative Society, or any other person recognized by the Authority to act as an insurance broker.
Q13.
What types of entities can be appointed as Corporate Agents according to IRDA regulations?

a.

Only firms

b.

Only companies formed under the Companies Act, 1956

c.

Firms, companies, banking companies, regional rural banks, cooperative societies, panchayats, local authorities, NGOs, micro-lending finance organizations, NBFCs registered with RBI, and other approved institutions or organizations

d.

Only Non-Governmental Organizations

Discuss
Answer: (c).Firms, companies, banking companies, regional rural banks, cooperative societies, panchayats, local authorities, NGOs, micro-lending finance organizations, NBFCs registered with RBI, and other approved institutions or organizations Explanation:Corporate Agents can be firms, companies, banking companies, regional rural banks, cooperative societies, panchayats, local authorities, NGOs, micro-lending finance organizations, NBFCs registered with RBI, and other approved institutions or organizations.
Q14.
What are the minimum qualification requirements for Agents based on the population of the area where the applicant resides?

a.

Pass in 12th standard or equivalent examination

b.

Pass in 10th standard or equivalent examination

c.

Both a and b

d.

No minimum qualification required

Discuss
Answer: (c).Both a and b Explanation:If the applicant resides in an area with a population of 5,000 or more, the minimum qualification is a pass in the 12th standard or equivalent. If the population is less than 5,000, the minimum qualification is a pass in the 10th standard or equivalent.
Q15.
What are the permissible types of entities recognized by the Authority to act as Insurance Brokers?

a.

Sole proprietorship only

b.

Partnership firms and companies only

c.

Cooperative Societies and any other entity approved by the Authority

d.

Individuals with specific qualifications

Discuss
Answer: (c).Cooperative Societies and any other entity approved by the Authority Explanation:Insurance Brokers can be Cooperative Societies or any other entity recognized and approved by the Authority.
Q16.
Which organizations are eligible to be appointed as Corporate Agents according to IRDA regulations?

a.

Only profit-oriented entities

b.

Only government-owned entities

c.

A wide range of entities including NGOs, cooperative banks, and entities specifically approved by the Authority

d.

Only insurance companies

Discuss
Answer: (c).A wide range of entities including NGOs, cooperative banks, and entities specifically approved by the Authority Explanation:Corporate Agents can include a variety of entities such as NGOs, cooperative banks, and others specifically approved by the Authority, not limited to profit-oriented or government-owned entities.
Q17.
In what circumstances is a minimum qualification of 10th standard required for Agents?

a.

In all cases

b.

When the applicant resides in an area with a population of less than 5,000

c.

When the applicant resides in an urban area

d.

When the applicant is applying for a corporate agency license

Discuss
Answer: (b).When the applicant resides in an area with a population of less than 5,000 Explanation:A minimum qualification of 10th standard is required for Agents when the applicant resides in an area with a population of less than 5,000.
Q18.
Can an individual be granted an Insurance Broker license according to IRDA regulations?

a.

No, only companies and cooperative societies are eligible

b.

Yes, if the individual meets specific criteria and is recognized by the Authority

c.

Yes, but only if the individual is a certified insurance agent

d.

No, only partnership firms are eligible

Discuss
Answer: (b).Yes, if the individual meets specific criteria and is recognized by the Authority Explanation:An individual can be granted an Insurance Broker license if they meet specific criteria and are recognized by the Authority.
Q19.
Who has the authority for issuing licenses to Insurance Brokers according to regulations?

a.

Designated person in the insurance company

b.

Principal Officer of the Broking Company

c.

Corporate Insurance Executive

d.

Regulatory body independent of the Authority

Discuss
Answer: (b).Principal Officer of the Broking Company Explanation:The Principal Officer, possessing the minimum qualification and Insurance Broker Examination, is the chief executive officer of the Broking Company and is authorized to exclusively carry out the functions of an insurance broker.
Q20.
How are licenses for Corporate Agents issued and renewed?

a.

By the designated person in the insurance company

b.

By the CEO of the corporate agent

c.

By the Regulatory Authority

d.

By the Chief Executive Officer of IRDA

Discuss
Answer: (a).By the designated person in the insurance company Explanation:The designated person in the insurance company is responsible for issuing and renewing licenses for Corporate Agents.
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