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.
What should an advertisement for Unit Linked Life Insurance products explicitly state regarding premiums and investment risks?

a.

Premiums are guaranteed against any investment risks

b.

The premium paid is not subject to any investment risks

c.

Premiums are not subject to investment risks associated with capital markets

d.

The premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions.

Discuss
Answer: (d).The premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions. Explanation:The advertisement should explicitly state that the premium paid is subject to investment risks associated with capital markets, and the NAVs of the units may go up or down based on the performance of the fund and factors influencing the capital market, and the insured is responsible for his/her decisions.
Q102.
What is the essential ingredient of a life insurance product, according to the guidelines for product design?

a.

Premium amount

b.

Investment returns

c.

Benefit payable on death

d.

Policy term

Discuss
Answer: (c).Benefit payable on death Explanation:The essential ingredient of a life insurance product, according to the guidelines for product design, is the benefit payable on death. The guidelines emphasize the importance of the insurance element in life insurance products.
Q103.
What does the human life value element determine in the context of life insurance coverage?

a.

Premium amount

b.

Age of the insured

c.

Investment returns

d.

Extent of required life insurance coverage

Discuss
Answer: (d).Extent of required life insurance coverage Explanation:The human life value element in the context of life insurance coverage determines the extent of required life insurance coverage. It takes into account factors such as age, medical history, and premium amounts to establish the necessary coverage.
Q104.
How is the minimum sum assured linked to the term of the life policy and the age of the life assured?

a.

It is not linked to any factors

b.

Linked only to the term of the life policy

c.

Linked only to the age of the life assured

d.

Linked to both the term of the life policy and the age of the life assured

Discuss
Answer: (d).Linked to both the term of the life policy and the age of the life assured Explanation:The minimum sum assured is linked to both the term of the life policy and the age of the life assured. Age is considered in determining the minimum quantum of life/health coverage, and the minimum sum assured is influenced by both factors.
Q105.
What determines the policy term in the case of whole life plans according to the guidelines?

a.

Premium amount

b.

Seventy minus the age at entry

c.

Investment returns

d.

Age of the life assured

Discuss
Answer: (b).Seventy minus the age at entry Explanation:In the case of whole life plans, the policy term is determined as seventy minus the age at entry. The guidelines specify this calculation for whole life insurance plans.
Q106.
What is the purpose of ensuring a defined quantum of the sum assured in the case of single premium policies, according to the guidelines?

a.

To determine the premium

b.

To eliminate the need for life insurance coverage

c.

To provide a discount on the premium

d.

To ensure at least a percentage of the single premium as the sum assured

Discuss
Answer: (d).To ensure at least a percentage of the single premium as the sum assured Explanation:The purpose of ensuring a defined quantum of the sum assured in the case of single premium policies, according to the guidelines, is to ensure at least a percentage of the single premium as the sum assured. This ensures that there is a meaningful life insurance element in the policy.
Q107.
How is the sum assured related to the premium in unit-linked insurance plans, as per the guidelines?

a.

Sum assured determines the premium

b.

Premium determines the sum assured

c.

Sum assured and premium are unrelated

d.

Sum assured is a fixed amount in all cases

Discuss
Answer: (c).Sum assured and premium are unrelated Explanation:In unit-linked insurance plans, unlike in traditional products, the sum assured does not determine the premium. The guidelines specify that the sum assured and premium are unrelated in unit-linked insurance plans.
Q108.
What is the formula for calculating the minimum mortality cover in unit-linked products, as per the guidelines?

a.

T−APT−AP

b.

T×APT×AP

c.

T÷APT÷AP

d.

T+APT+AP

Discuss
Answer: (b).T×APT×AP Explanation:The formula for calculating the minimum mortality cover in unit-linked products is T×APT×AP, where T is the Policy Term chosen by the policyholder, and AP is the Annualized premium selected by the policyholder at the inception of the policy.
Q109.
In the case of Whole Life Products, how is T (Policy Term) determined in the formula for calculating the minimum mortality cover?

a.

T=APT=AP

b.

T=70T=70

c.

T=SPT=SP

d.

T=70−age at entryT=70−age at entry

Discuss
Answer: (d).T=70−age at entryT=70−age at entry Explanation:In the case of Whole Life Products, T (Policy Term) is determined as T=70−age at entryT=70−age at entry in the formula for calculating the minimum mortality cover.
Q110.
What is the minimum annual health cover for Regular Premium (RP) contracts for individuals below 45 years of age?

a.

2 times the annualized premiums

b.

5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher

c.

Rs. 75,000 per annum

d.

10 times the annualized premiums

Discuss
Answer: (b).5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher Explanation:The minimum annual health cover for Regular Premium (RP) contracts for individuals below 45 years of age is 5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher.
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