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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Regulations on Conduct of Business. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Regulations on Conduct of Business knowledge to the test? Let's get started with our carefully curated MCQs!

Regulations on Conduct of Business MCQs | Page 11 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q101.
How are premiums on marine insurance policies covering shipments between countries outside India typically received?

a.

In foreign currency only

b.

In Indian rupees only

c.

In either foreign currency or Indian rupees, with a certificate from an authorized dealer in foreign exchange

d.

In either foreign currency or Indian rupees, without any restrictions

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?

a.

Claims are paid in foreign currency

b.

Claims are paid in Indian rupees

c.

Claims are paid in the currency in which the policies were issued

d.

Claims are paid based on the preference of the claimant

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.
Q103.
What documents are typically required to support applications for remittances of marine claims against exports?

a.

Statement of claim, insurance policy, and survey report

b.

Statement of claim, insurance policy, survey report, and bill of lading

c.

Statement of claim, insurance policy, survey report, bill of lading, and certified copy of invoice

d.

Statement of claim, insurance policy, survey report, bill of lading, certified copy of invoice, and any other documents ordinarily required to support the claim

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?

a.

If the exporter requests settlement in rupees

b.

If the title to the goods has passed to the foreign buyer

c.

If the Reserve Bank approves the settlement

d.

If the insurer agrees to settle the claim in rupees

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.
Q105.
What provision does not apply to remittances for replenishment of foreign currency balances?

a.

The provision allowing settlement of claims in rupees

b.

The provision allowing remittances of claims against exports

c.

The provision requiring specific approval of the Reserve Bank

d.

The provision permitting settlement through overseas claims settling agents

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.
Q106.
In which circumstances may insurers settle claims from their foreign currency balances in favor of overseas suppliers for certain categories of imports?

a.

When ownership of the goods vests in the importer

b.

When import is facilitated by private sector undertakings

c.

When the terms of the foreign credit require insurance cover in foreign currency

d.

When payment for the goods has not been made to the supplier

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?

a.

When payment for the goods has been received by the Indian intermediary from the buyer

b.

When ownership of the goods vests with the overseas supplier

c.

When the goods are financed through India

d.

When the claim is proposed to be settled in favor of the overseas buyer

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?

a.

Foreign currency

b.

Indian rupees

c.

Euro

d.

US dollars

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.
Q109.
Under what circumstances may non-marine risks in respect of assets outside India owned by residents of India be covered in foreign currency?

a.

When premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin

b.

When the Reserve Bank grants specific approval for foreign currency policies

c.

When the assets are held outside India by Indian nationals

d.

When the policyholder has returned to India after a minimum continuous stay abroad for at least one year

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.
Q110.
What conditions must be met for insurers to remit claims under policies issued in foreign currency?

a.

The claim must be admitted by the competent authority of the insurance company

b.

The policy must be issued in foreign currency with specific approval of the Reserve Bank

c.

Claims on account of reinsurance must be lodged with the reinsurers

d.

All of the above

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.
Page 11 of 32