Regulations on Conduct of Business MCQs

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Regulations on Conduct of Business MCQs | Page 1 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q1.
What does the term "Rural sector" mean according to IRDA (Obligations of Insurers to Rural Social Sectors) Regulations, 2002?

a.

Any area with a population of less than 10,000

b.

Places or areas classified as rural in the latest decennial population census

c.

Areas with primarily agricultural activities

d.

Geographical regions with limited urban development

Discuss
Answer: (b).Places or areas classified as rural in the latest decennial population census Explanation:"Rural sector" is defined as any place or areas classified as rural while conducting the latest decennial population census.
Q2.
What is included in the term "Social sector" as per the regulations?

a.

Only economically vulnerable or backward classes

b.

Only unorganised and informal sector workers

c.

Persons with disability and guardians

d.

Both economically vulnerable or backward classes and other categories of persons

Discuss
Answer: (d).Both economically vulnerable or backward classes and other categories of persons Explanation:"Social sector" includes unorganised sector, informal sector, economically vulnerable or backward classes, and other categories of persons, both in rural and urban areas.
Q3.
What is the meaning of "economically vulnerable or backward classes" in the context of these regulations?

a.

Persons below the age of 18

b.

Persons with disability

c.

Persons who live below the poverty line

d.

Persons engaged in agricultural pursuits

Discuss
Answer: (c).Persons who live below the poverty line Explanation:"Economically vulnerable or backward classes" means persons who live below the poverty line.
Q4.
What does the term "informal sector" include according to the regulations?

a.

Highly organized workers

b.

Workers engaged in large-scale industries

c.

Self-employed workers at a low level of organizational technology

d.

Only agricultural workers

Discuss
Answer: (c).Self-employed workers at a low level of organizational technology Explanation:"Informal sector" includes small scale, self-employed workers typically at a low level of organizational technology.
Q5.
What obligations must every insurer, who begins to carry on insurance business after the commencement of the Insurance Regulatory and Development Authority Act, 1999, ensure during the first five financial years?

a.

Provide coverage only to urban areas

b.

Comply with obligations only in the first three financial years

c.

Undertake obligations pertaining to the persons in rural and urban areas

d.

Only focus on economically vulnerable classes

Discuss
Answer: (c).Undertake obligations pertaining to the persons in rural and urban areas Explanation:Every insurer must ensure that they undertake obligations pertaining to the persons in rural and urban areas during the first five financial years.
Q6.
What provision is made for insurance companies commencing operations in the second half of the financial year, as per the regulations?

a.

They are exempt from obligations for the first financial year

b.

They must comply with obligations for the entire financial year

c.

Obligations are applicable only if they are in operation for more than six months

d.

Obligations are not applicable for the first two financial years

Discuss
Answer: (c).Obligations are applicable only if they are in operation for more than six months Explanation:In cases where an insurance company commences operations in the second half of the financial year and is in operations for less than six months as at 31st March of the relevant financial year, obligations are applicable.
Q7.
What percentage of rural sector obligations is applicable for a life insurer in the second financial year, as per the regulations?

a.

Seven percent

b.

Nine percent

c.

Twelve percent

d.

Fourteen percent

Discuss
Answer: (b).Nine percent Explanation:In the second financial year, a life insurer is obligated to fulfill nine percent of total policies written direct in that year for the rural sector.
Q8.
What is the percentage of social sector obligations for all insurers in the fourth financial year?

a.

Ten thousand lives

b.

Fifteen thousand lives

c.

Twenty thousand lives

d.

Proportionate percentage

Discuss
Answer: (b).Fifteen thousand lives Explanation:In the fourth financial year, all insurers are obligated to cover fifteen thousand lives for the social sector.
Q9.
What does the term "proportionate percentage" mean in the context of the first financial year for social sector obligations?

a.

A fixed percentage determined by the IRDA

b.

A percentage equivalent to the total population

c.

A percentage based on the period of operation

d.

A percentage determined by the insurer

Discuss
Answer: (c).A percentage based on the period of operation Explanation:In the first financial year, where the period of operation is less than twelve months, the proportionate percentage or number of lives shall be undertaken for social sector obligations.
Q10.
What additional obligation is specified for a general insurer in the context of the social sector?

a.

Coverage for spastic persons

b.

Insurance for crops

c.

Providing disability benefits

d.

Coverage for economically vulnerable classes

Discuss
Answer: (b).Insurance for crops Explanation:In the case of a general insurer, the obligations specified for the social sector shall include insurance for crops.
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