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!

So, are you ready to put your IRDA and its Licensing Functions knowledge to the test? Let's get started with our carefully curated MCQs!

IRDA and its Licensing Functions MCQs | Page 20 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q191.
Fill in the blank by choosing the correct option. The minimum capital required for a direct broker is __________, a reinsurance broker is ________ and composite broker is ________.

a.

50 lakhs, 100 lakhs, 200 lakhs

b.

50 lakhs, 200 lakhs, 250 lakhs

c.

200 lakhs, 100 lakhs, 50 lakhs

d.

250 lakhs, 200 lakhs, 50 lakhs

Discuss
Answer: (b).50 lakhs, 200 lakhs, 250 lakhs Explanation:The minimum amount of capital required by an insurance broker depends upon the type of insurance broker the applicant wishes to become. For a direct broker, the amount is 50 lakhs, for a reinsurance broker, it is 200 lakhs, and for a composite broker, the minimum amount of capital prescribed is 250 lakhs.
Q192.
For which of the following is it mandatory to purchase professional indemnity insurance?

a.

Brokers

b.

Corporate agents

c.

Insurance agents

d.

All of the above

Discuss
Answer: (a).Brokers Explanation:Every insurance broker needs to take out and maintain a professional indemnity insurance cover throughout the validity of the period of the broking licence granted to him by the Authority.
Q193.
What does IBNR in insurance business stand for?

a.

Incurred But Not Reported

b.

Incurred But Not Realised

c.

Injured But Not Reported

d.

Injured But Not Realised

Discuss
Answer: (a).Incurred But Not Reported Explanation:IBNR in insurance business means Incurred But Not Reported. It refers to the recognition that events have taken place in such a manner that they will eventually produce claims. However, these events have not yet been reported to the insurance company.
Q194.
As per IRDA (Life Insurance – Reinsurance Regulations) 2000, the reinsurer chosen by the insurer must enjoy a credit rating of a minimum of __________ of Standard and Poor or equivalent rating of any international rating agency.

a.

AA+

b.

AAA

c.

BBB

d.

CCC

Discuss
Answer: (c).BBB Explanation:The reinsurer must have a minimum credit rating of BBB from Standard and Poor or an equivalent rating of any international rating agency.
Q195.
Who is the National Reinsurer of India?

a.

Life Insurance Corporation of India

b.

General Insurance Corporation of India

c.

Reinsurance Corporation of India

d.

Insurance Regulatory and Development Authority

Discuss
Answer: (b).General Insurance Corporation of India Explanation:General Insurance Corporation of India has been notified as the National Reinsurer of India. Life Insurance Corporation of India (LIC) is a life insurance company. Insurance Regulatory and Development Authority is the regulator for the Indian insurance industry, created for the supervision and development of the insurance sector in India.
Q196.
Which of the following needs to create outstanding claims provision for every reinsurance arrangement accepted on the basis of loss information advices received from Brokers / Cedants and where such advices are not received, on an actuarial estimation basis?

a.

Life insurers

b.

General insurers

c.

Both

d.

None of the above

Discuss
Answer: (b).General insurers Explanation:The life insurers in India are not required to create outstanding claims provisions.
Q197.
As per the IRDA (Life Insurance – Reinsurance Regulations) 2000, an insurer needs to file with the Authority, at least _____ days before the commencement of each financial year, a note on its underwriting policy indicating the classes of business, geographical scope, underwriting limits and profit objective.

a.

Fifteen

b.

Thirty

c.

Forty-five

d.

Sixty

Discuss
Answer: (c).Forty-five Explanation:The IRDA (Life Insurance – Reinsurance Regulations) 2000 require an insurer to file with the Authority, at least 45 days before the commencement of each financial year, a note on its underwriting policy indicating the classes of business, geographical scope, underwriting limits, and profit objective.
Page 20 of 20