Regulations on Conduct of Business MCQs

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

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Regulations on Conduct of Business MCQs | Page 11 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Discuss
Answer: (c).In either foreign currency or Indian rupees, with a certificate from an authorized dealer in foreign exchange Explanation:Premiums on marine insurance policies covering shipments between countries outside India must ordinarily be received in foreign currency, but payment in rupees may be accepted provided a certificate from an authorized dealer in foreign exchange is produced to show that the rupees are derived by a remittance from abroad in an approved manner.
Q102.
How are claims against marine insurance policies handled when payable to individuals, firms, or companies in India?
Discuss
Answer: (b).Claims are paid in Indian rupees Explanation:Claims against marine insurance policies, when payable to individuals, firms, or companies in India, should be paid only in Indian rupees, irrespective of the currency in which the relative policies had been issued. This ensures consistency and compliance with regulatory requirements for claims settlement within India.
Discuss
Answer: (c).Statement of claim, insurance policy, survey report, bill of lading, and certified copy of invoice Explanation:Applications for remittances of marine claims against exports typically need to be supported by several documents, including the statement of claim, insurance policy, survey report, bill of lading, certified copy of invoice, and any other documents ordinarily required to support the claim. These documents help verify the legitimacy of the claim and ensure compliance with regulatory requirements for claims settlement.
Q104.
Under what circumstances may insurers settle claims in rupees in favor of Indian exporters for marine claims against exports?
Discuss
Answer: (b).If the title to the goods has passed to the foreign buyer Explanation:Insurers may settle claims in rupees in favor of Indian exporters for marine claims against exports if the title to the goods has passed to the foreign buyer. This allows for flexibility in claims settlement and helps facilitate the smooth processing of claims for exporters.
Discuss
Answer: (c).The provision requiring specific approval of the Reserve Bank Explanation:The provision requiring specific approval of the Reserve Bank does not apply to remittances for replenishment of foreign currency balances. This provision is specific to ensuring compliance with regulatory requirements for foreign currency transactions and may require additional scrutiny and approval from the Reserve Bank.
Discuss
Answer: (c).When the terms of the foreign credit require insurance cover in foreign currency Explanation:Insurers may settle claims from their foreign currency balances in favor of overseas suppliers for certain categories of imports when the terms of the foreign credit require insurance cover in foreign currency. This provision allows for flexibility in claims settlement and facilitates the early replacement of lost or damaged goods in cases where insurance cover is required to be in foreign currency according to the terms of the foreign credit.
Q107.
Under what circumstances may claims arising from marine insurance policies covering merchanting trade financed through India be settled by insurers from their foreign currency balances?
Discuss
Answer: (b).When ownership of the goods vests with the overseas supplier Explanation:Claims arising from marine insurance policies covering merchanting trade financed through India may be settled by insurers from their foreign currency balances only when ownership of the goods vests with the overseas supplier. This condition ensures that claims settlement aligns with ownership rights and facilitates smooth transactions in merchanting trade.
Q108.
In which currency may insurance cover on risks inside India be issued for assets owned by residents of India?
Discuss
Answer: (b).Indian rupees Explanation:Insurance cover on risks inside India for assets owned by residents of India may be issued only in Indian rupees. This regulation ensures compliance with currency regulations and aligns with the domestic currency framework for insurance transactions.
Discuss
Answer: (a).When premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin Explanation:Non-marine risks in respect of assets outside India owned by residents of India may be covered in foreign currency if premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin. This provision ensures that policyholders have access to foreign currency coverage for their assets held abroad under specific conditions outlined by regulatory authorities.
Discuss
Answer: (d).All of the above Explanation:For insurers to remit claims under policies issued in foreign currency, several conditions must be met: (i) The claim must be admitted by the competent authority of the insurance company. (ii)The policy must be issued in foreign currency with specific approval of the Reserve Bank. (iii) Claims on account of reinsurance must be lodged with the reinsurers. These conditions ensure compliance with regulatory requirements and proper claims settlement procedures.