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 5 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q41.
What disqualifications can lead to the cancellation of an insurance agent's license under Regulation 11?

a.

Disqualifications mentioned in Section 40A of the Act

b.

Disqualifications mentioned in Section 40 as amended from time to time

c.

Disqualifications mentioned in Sub-Section (4) of Section 42D of the Act

d.

Violation of any provision of Regulation 19

Discuss
Answer: (c).Disqualifications mentioned in Sub-Section (4) of Section 42D of the Act Explanation:The designated person may cancel a license or certificate of an insurance agent if the insurance agent suffers from any disqualifications mentioned in Sub-Section (4) of Section 42D of the Act.
Q42.
Is the payment of an annual fee applicable to corporate agents or insurance agents?

a.

Yes, both corporate agents and insurance agents must pay an annual fee

b.

No, neither corporate agents nor insurance agents need to pay an annual fee

c.

Only corporate agents need to pay an annual fee

d.

Only insurance agents need to pay an annual fee

Discuss
Answer: (b).No, neither corporate agents nor insurance agents need to pay an annual fee Explanation:No annual fee is payable by corporate agents or insurance agents according to Regulation 18.
Q43.
How is the remuneration of an insurance broker regulated under Regulation 19?

a.

No specific regulations regarding remuneration for insurance brokers

b.

Remuneration is determined by mutual agreement between the insurance broker and the client

c.

An insurance broker cannot be paid an amount exceeding the prescribed limit under Regulation 19

d.

Remuneration for insurance brokers is fixed by the Regulatory Authority

Discuss
Answer: (c).An insurance broker cannot be paid an amount exceeding the prescribed limit under Regulation 19 Explanation:No insurance broker shall be paid an amount exceeding the prescribed limit under Regulation 19.
Q44.
How is the remuneration of a Corporate Agent regulated?

a.

By mutual agreement between the Corporate Agent and the client

b.

A commission as per provisions of Section 40A of the Act

c.

No specific regulations regarding remuneration for Corporate Agents

d.

Fixed by the Regulatory Authority

Discuss
Answer: (b).A commission as per provisions of Section 40A of the Act Explanation:Every Corporate Agent shall be paid a commission as per provisions of Section 40A of the Act.
Q45.
How is the remuneration of an Agent regulated?

a.

By mutual agreement between the Agent and the client

b.

A commission as per provisions of Section 40 as amended from time to time

c.

No specific regulations regarding remuneration for Agents

d.

Fixed by the Regulatory Authority

Discuss
Answer: (b).A commission as per provisions of Section 40 as amended from time to time Explanation:Every Agent shall be paid a commission as per provisions of Section 40 as amended from time to time.
Q46.
What is the limit on the percentage of premium that can emanate from a single client for an insurance broker in the third year of business onwards?

a.

20%

b.

30%

c.

40%

d.

50%

Discuss
Answer: (b).30% Explanation:For insurance brokers, not more than 50% of the premium in the first year, 40% in the second year, and 30% from the third year onwards shall emanate from any one client.
Q47.
What is the maximum percentage of total premium that a corporate agent is allowed to have from one person, organization, or group of organizations in any year?

a.

20%

b.

30%

c.

40%

d.

50%

Discuss
Answer: (d).50% Explanation:According to the code of conduct under Regulation 9, no corporate agent shall have a portfolio of insurance business from one person, organization, or group of organizations where the premium exceeds 50% of the total premium procured in any year.
Q48.
Are there any provisions or limits on the percentage of premium from a single client for individual agents?

a.

Yes, there are specific limits for individual agents

b.

No, there are no such provisions or limits for individual agents

c.

Individual agents follow the same limits as insurance brokers

d.

It depends on the business structure of the individual agent

Discuss
Answer: (b).No, there are no such provisions or limits for individual agents Explanation:There are no provisions or limits for individual agents regarding the percentage of premium from a single client.
Q49.
What is the requirement for insurance brokers regarding deposit before the commencement of business?

a.

A deposit equivalent to 10% of the initial capital

b.

A deposit equivalent to 15% of the initial capital

c.

A deposit equivalent to 20% of the initial capital

d.

No deposit requirement for insurance brokers

Discuss
Answer: (c).A deposit equivalent to 20% of the initial capital Explanation:Insurance brokers are required to deposit and keep deposited with any scheduled bank a sum equivalent to 20% of the initial capital before the commencement of business.
Q50.
Is there any deposit requirement for corporate agents or individual agents according to Regulation 22?

a.

Yes, both corporate agents and individual agents must maintain a deposit

b.

No, neither corporate agents nor individual agents are required to maintain a deposit

c.

Only corporate agents must maintain a deposit

d.

Only individual agents must maintain a deposit

Discuss
Answer: (b).No, neither corporate agents nor individual agents are required to maintain a deposit Explanation:No deposit is required to be maintained by corporate agents or individual agents according to Regulation 22.
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