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 8 of 20

Discover more Topics under IC 14 Regulations of Insurance Business

Q71.
Under what circumstances may the Authority accept a renewal application after the license has ceased to remain in force?

a.

If the TPA pays a late fee

b.

If the TPA was prevented by sufficient cause from applying for renewal

c.

If the TPA submits an affidavit of reasons

d.

If the TPA pays a payment of Rs. 750/-

Discuss
Answer: (b).If the TPA was prevented by sufficient cause from applying for renewal Explanation:The Authority may renew the license after examining the reasons given in the application if it is satisfied that the TPA was prevented by sufficient cause from applying for renewal at least 30 days before the expiry.
Q72.
What fee is required for issuing a duplicate license if the original license is lost or mutilated?

a.

Rs. 500/-

b.

Rs. 750/-

c.

Rs. 1,000/-

d.

Rs. 1,500/-

Discuss
Answer: (c).Rs. 1,000/- Explanation:The fee for issuing a duplicate license if the original license is lost or mutilated is Rs. 1,000/-.
Q73.
Under what circumstances may the Authority initiate action under Regulation 13?

a.

If the TPA is financially profitable

b.

If the TPA is following the regulations effectively

c.

If the TPA is functioning improperly and against the interests of insured/policyholder or insurance company

d.

If the TPA has received positive customer feedback

Discuss
Answer: (c).If the TPA is functioning improperly and against the interests of insured/policyholder or insurance company Explanation:The Authority may initiate action under Regulation 13 if it is of the opinion that the TPA is functioning improperly and/or against the interests of the insured/policyholder or insurance company.
Q74.
What opportunity must the Authority provide before revoking or canceling a TPA's license under Regulation 13?

a.

A written notice

b.

A reasonable opportunity of being heard

c.

An oral warning

d.

A notice period of 15 days

Discuss
Answer: (b).A reasonable opportunity of being heard Explanation:Before revoking or canceling a TPA's license, the Authority must grant a reasonable opportunity of being heard to the TPA.
Q75.
What action should the insurance company take if a TPA's license is revoked or canceled?

a.

Ignore the situation

b.

Continue working with the same TPA

c.

Immediately take alternative steps, including appointing another TPA

d.

File a review application with the Authority

Discuss
Answer: (c).Immediately take alternative steps, including appointing another TPA Explanation:If a TPA's license is revoked or canceled, the insurance company should immediately take alternative steps, including appointing another TPA, to continue serving the insured/policyholders.
Q76.
Within how many days can a TPA file a review application with the Authority after the revocation or cancellation of its license?

a.

15 days

b.

30 days

c.

45 days

d.

60 days

Discuss
Answer: (b).30 days Explanation:A TPA whose license has been revoked or canceled may file a review application with the Authority within 30 days of receiving the order.
Q77.
Within what time frame should the Authority dispose of a review application filed by a TPA after the revocation or cancellation of its license?

a.

30 days

b.

60 days

c.

90 days

d.

120 days

Discuss
Answer: (c).90 days Explanation:Within a reasonable period of the receipt of the application for review but not later than 90 days, the Authority shall dispose of the application after affording the applicant a reasonable opportunity of being heard.
Q78.
What is the duty of a TPA, its Chief Administrative Officer or Chief Executive Officer, and its employees or representatives regarding their identity and license disclosure?

a.

Identity disclosure is not required

b.

Disclose their identity to the public, insured/policyholder, and the insurance company

c.

Disclose their license only to the insurance company

d.

Keep their identity confidential

Discuss
Answer: (b).Disclose their identity to the public, insured/policyholder, and the insurance company Explanation:It is the duty of every TPA, its Chief Administrative Officer or Chief Executive Officer, and its employees or representatives to establish their identity to the public, insured/policyholder, and the insurance company and disclose their license to the insured/policyholder/prospect.
Q79.
What should a TPA do if it becomes aware of any adverse report or inconsistencies relevant to the insurance company's business?

a.

Ignore it

b.

Keep it confidential

c.

Bring it to the notice of the insurance company

d.

Handle it independently

Discuss
Answer: (c).Bring it to the notice of the insurance company Explanation:It is the duty of a TPA to bring to the notice of the insurance company with whom it has an agreement any adverse report or inconsistencies or any material fact that is relevant for the insurance company’s business.
Q80.
According to the Code of Conduct, what should a TPA refrain from doing in relation to insured/policyholders of a particular insurance company?

a.

Encourage them to switch insurance companies

b.

Provide them with additional benefits

c.

Ignore their needs and concerns

d.

Charge them extra fees

Discuss
Answer: (a).Encourage them to switch insurance companies Explanation:A TPA should refrain from acting in a manner that may influence directly or indirectly insured/policyholder of a particular insurance company to shift the insurance portfolio from the existing insurance company to another insurance company.
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