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.
Who is responsible for providing appropriate training to insurance agents/intermediaries before they are authorized to sell Unit Linked Insurance products?

a.

Insurance Regulatory and Development Authority

b.

Life insurance Companies

c.

Life Insurance Council

d.

Insurance Institute of India

Discuss
Answer: (b).Life insurance Companies Explanation:Life insurance companies are responsible for training agents/intermediaries before they sell Unit Linked Insurance products, ensuring they understand the features and risks associated with these products.
Q102.
For single premium contracts under ULIPs, the minimum sum assured for the age at entry of below 45 years is __________ of the single premium paid.

a.

100%

b.

110%

c.

125%

d.

150%

Discuss
Answer: (c).125% Explanation:For single premium contracts under ULIPs, the minimum sum assured for those entering below 45 years of age is typically 125% of the single premium paid, providing a baseline level of coverage.
Q103.
What is the lock-in period for all Unit Linked Products?

a.

One year

b.

Three years

c.

Five years

d.

Seven years

Discuss
Answer: (c).Five years Explanation:All Unit Linked Products have a lock-in period of five years, during which policyholders cannot make residual payments on lapsed or surrendered policies.
Q104.
Money Laundering refers to ________________.

a.

Conversion of cash into gold

b.

Conversion of asset into cash

c.

Conversion of illegal money into legitimate money

d.

Transfer of cash from one account to another

Discuss
Answer: (c).Conversion of illegal money into legitimate money Explanation:Money laundering involves the process of converting illegally obtained funds into legitimate assets or funds to conceal their origin.
Q105.
From the below options, which is one of the stages of money laundering?

a.

Smurfing

b.

Shell companies

c.

Integration

d.

None of the above

Discuss
Answer: (c).Integration Explanation:Integration is one of the stages of money laundering, where laundered funds are reintroduced into the legitimate economy to disguise their illicit origin.
Q106.
Financial Action Task Force (FATF) was set up in ___________.

a.

Paris

b.

Berlin

c.

London

d.

India

Discuss
Answer: (a).Paris Explanation:The Financial Action Task Force (FATF) was established in Paris to combat money laundering and terrorist financing through international cooperation and setting standards.
Q107.
Out of the below, which is an example of a low-risk customer?

a.

Non-residents

b.

High net worth individuals

c.

Companies having close family shareholding or beneficial ownership

d.

None of the above

Discuss
Answer: (d).None of the above Explanation:None of the options listed are considered low-risk customers; each presents unique risks in terms of money laundering and financial crimes.
Q108.
Records of transactions reported to the FIU have to be retained for a maximum of how many years?

a.

5 years

b.

7 years

c.

9 years

d.

10 years

Discuss
Answer: (d).10 years Explanation:Records of transactions reported to the Financial Intelligence Unit (FIU) must be retained for a maximum of 10 years to ensure compliance with anti-money laundering regulations.
Q109.
KYC norms include which of the below?

a.

Obtaining details for proper identification of new customers

b.

Verifying addresses

c.

Photographs

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:KYC (Know Your Customer) norms encompass obtaining proper identification details, verifying addresses, and often include capturing photographs to establish the identity of customers.
Q110.
In which year was the Financial Intelligence Unit (FIU) set up in Delhi?

a.

1999

b.

2002

c.

2004

d.

2006

Discuss
Answer: (c).2004 Explanation:The Financial Intelligence Unit (FIU) was established in Delhi in 2004 to serve as the central national agency responsible for receiving, processing, analyzing, and disseminating information relating to suspicious financial transactions.
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