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

Q101.
How are social sector obligations determined for general insurers in the financial year 2008-09?

a.

Fixed number of lives

b.

Average number of lives covered in 2002-03 to 2004-05

c.

Ten percent increase over the previous year

d.

Proportional to the insurer's total premium income

Discuss
Answer: (b).Average number of lives covered in 2002-03 to 2004-05 Explanation:For the financial year 2008-09, social sector obligations for general insurers are determined based on the average number of lives covered in the years 2002-03 to 2004-05.
Q102.
Is re-insurance premium included while calculating the obligations of insurers for the rural and social sectors?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't Say

Discuss
Answer: (b).No Explanation:Re-insurance premium is not included while calculating the obligations of insurers for the rural and social sectors.
Q103.
Who has the authority to prescribe or revise the obligations specified in these regulations?

a.

Insurance companies

b.

Ministry of Finance

c.

Insurance Regulatory and Development Authority

d.

National Rural Development Authority

Discuss
Answer: (c).Insurance Regulatory and Development Authority Explanation:The Insurance Regulatory and Development Authority (IRDA) has the authority to prescribe or revise the obligations specified in these regulations.
Q104.
How is compliance with social sector obligations determined for both general and life companies?

a.

Percentage of total assets

b.

Sale of products conforming to micro-insurance regulations

c.

Number of policies issued

d.

Premium income

Discuss
Answer: (b).Sale of products conforming to micro-insurance regulations Explanation:Compliance with social sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q105.
Where should insurers submit returns regarding rural and social sector obligations?

a.

To the Ministry of Finance

b.

To the National Rural Development Authority

c.

As part of the financial returns under IRDA's regulations

d.

To the Insurance Regulatory and Development Authority (IRDA) directly

Discuss
Answer: (c).As part of the financial returns under IRDA's regulations Explanation:Every insurer should submit returns regarding rural and social sector obligations as part of the financial returns under the Insurance Regulatory and Development Authority (IRDA) (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002.
Q106.
Unit Linked Insurance Plans (ULIPs) are _______-linked insurance plans.

a.

insurance

b.

debt

c.

market

d.

indemnity

Discuss
Answer: (c).market Explanation:ULIPs are market-linked insurance plans, providing both life protection and investment opportunities to policyholders.
Q107.
Where data for the performance of a fund of the ULIP is not available for at least one calendar year, past performance _________________.

a.

Of the fund must not be shown.

b.

Of the fund must be shown since inception.

c.

For one calendar year of the benchmark index must be shown.

d.

Of similar funds must be shown.

Discuss
Answer: (a).Of the fund must not be shown. Explanation:According to IRDA guidelines, if ULIP fund performance data is unavailable for at least one calendar year, past performance of the fund should not be displayed.
Q108.
The maximum loan amount that can be sanctioned for any ULIP policy having more than 60% of its funds invested in equities is ______ of the policy’s surrender value.

a.

25%

b.

40%

c.

50%

d.

60%

Discuss
Answer: (b).40% Explanation:For ULIP policies with over 60% of funds in equities, the maximum loan amount sanctioned cannot exceed 40% of the policy’s surrender value.
Q109.
Micro-insurance is based on the concept of ________.

a.

Risk

b.

Eventualities

c.

Pooling

d.

None of the above

Discuss
Answer: (c).Pooling Explanation:Micro-insurance operates on the principle of pooling resources, where premiums from many policyholders are aggregated to provide coverage for all.
Q110.
Who conceived the idea of Grameen Bank in 1974?

a.

Bill Clinton

b.

Professor Muhammad Yunus

c.

Nelson Mandela

d.

None of the above

Discuss
Answer: (b).Professor Muhammad Yunus Explanation:Professor Muhammad Yunus conceived the idea of Grameen Bank in Bangladesh in 1974, revolutionizing the concept of microfinance.
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