International Trends in Insurance Regulation MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on International Trends in Insurance Regulation, 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 International Trends in Insurance Regulation 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 International Trends in Insurance Regulation mcq questions that explore various aspects of International Trends in Insurance Regulation problems. Each MCQ is crafted to challenge your understanding of International Trends in Insurance Regulation 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 International Trends in Insurance Regulation MCQs are your pathway to success in mastering this essential IC 14 Regulations of Insurance Business topic.

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International Trends in Insurance Regulation MCQs | Page 3 of 3

Discover more Topics under IC 14 Regulations of Insurance Business

Q21.
When was the IAIS established?

a.

1980

b.

1994

c.

2000

d.

2010

Discuss
Answer: (b).1994 Explanation:The IAIS was established in 1994 to represent insurance regulators and supervisors of some 190 jurisdictions.
Q22.
Which of the following statements best describes the role of insurance in society?

a.

Insurance primarily focuses on profit-making for companies.

b.

Insurance serves a great social need by providing financial security.

c.

Insurance is solely regulated by the government.

d.

Insurance is not essential for individuals or businesses.

Discuss
Answer: (b).Insurance serves a great social need by providing financial security. Explanation:Insurance serves a great social need by providing financial security to individuals and businesses.
Q23.
What is the primary purpose of regulations created by the insurance regulator?

a.

To maximize profits for insurance companies

b.

To limit coverage options for policyholders

c.

To protect the interests of policyholders and ensure their contractual rights are upheld

d.

To restrict the growth of the insurance industry

Discuss
Answer: (c).To protect the interests of policyholders and ensure their contractual rights are upheld Explanation:The primary purpose of regulations created by the insurance regulator is to protect the interests of policyholders and ensure their contractual rights are upheld.
Q24.
What role does the International Association of Insurance Supervisors (IAIS) play in the insurance industry?

a.

IAIS primarily focuses on marketing insurance products globally.

b.

IAIS is responsible for setting insurance premiums for policyholders.

c.

IAIS works for the better regulation and development of insurance on a global scale.

d.

IAIS provides financial support to insurance companies.

Discuss
Answer: (c).IAIS works for the better regulation and development of insurance on a global scale. Explanation:The International Association of Insurance Supervisors (IAIS) works for the better regulation and development of insurance on a global scale.
Q25.
What type of documents does IAIS issue?

a.

Marketing brochures

b.

Global insurance principles, standards, and guidance papers

c.

Investment reports

d.

Technical manuals for insurance agents

Discuss
Answer: (b).Global insurance principles, standards, and guidance papers Explanation:IAIS issues global insurance principles, standards, and guidance papers to provide direction and support for insurance supervision worldwide.
Q26.
As per the principle of indemnity, for acceptable claims; insurance companies pay ________

a.

Compensation only for the loss amount

b.

The full policy amount irrespective of the loss amount

c.

Actual loss amount even if the loss amount is more than the policy amount

d.

50% of the loss amount irrespective of the loss amount

Discuss
Answer: (a).Compensation only for the loss amount Explanation:According to the principle of indemnity, insurance companies compensate policyholders only for the actual loss amount, not exceeding the policy coverage.
Q27.
How can one assess if an insurance company will be able to meet its claims or not?

a.

Operating margins of the company

b.

Profitability of the company

c.

Solvency ratio

d.

Share capital of the company

Discuss
Answer: (c).Solvency ratio Explanation:The solvency ratio is a key measure to assess whether an insurance company can meet its claims obligations and remain financially stable.
Q28.
The Financial Services Authority (FSA) is the insurance regulator of which country?

a.

United States

b.

United Kingdom

c.

Pakistan

d.

France

Discuss
Answer: (b).United Kingdom Explanation:The Financial Services Authority (FSA) is the insurance regulator of the United Kingdom.
Q29.
How much is the minimum capital requirement for starting insurance business in India?

a.

Rs. 25 crores

b.

Rs. 50 crores

c.

Rs. 75 crores

d.

Rs. 100 crores

Discuss
Answer: (d).Rs. 100 crores Explanation:The minimum capital requirement for starting an insurance business in India is Rs. 100 crores.
Q30.
The International Association of Insurance Supervisors (IAIS) was established in which year?

a.

1854

b.

1994

c.

1894

d.

1954

Discuss
Answer: (b).1994 Explanation:The International Association of Insurance Supervisors (IAIS) was established in 1994 to promote effective and globally consistent supervision of the insurance industry.
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