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 is the minimum annual health cover requirement for regular premium contracts for individuals aged below 45 years, according to IRDA guidelines?

a.

2 times the annualized premiums or Rs. 50,000 per annum, whichever is higher

b.

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

c.

3 times the annualized premiums or Rs. 75,000 per annum, whichever is higher

d.

105 percent of the total premiums paid

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 contracts for individuals aged below 45 years should be 5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher.
Q102.
Under what conditions can the premium on a marine insurance policy for exports from India be accepted in rupees?

a.

If the exporter is not making the payment on behalf of any non-resident

b.

If the exporter is defraying insurance charges on behalf of the overseas buyer and agrees to recover the payment from the buyer in an approved manner

c.

Both a and b

d.

If the exporter has sufficient funds in their foreign currency account

Discuss
Answer: (c).Both a and b Explanation:The premium on a marine insurance policy for exports from India may be accepted in rupees if either (a) the exporter is not making the payment on behalf of any non-resident, or (b) the exporter is defraying insurance charges on behalf of the overseas buyer and agrees to recover the payment from the buyer in an approved manner.
Q103.
Under what conditions may insurers provide extensions of marine insurance cover for additional risks or extended transit risks?

a.

If the additional premiums are collected from overseas buyers in foreign currency

b.

If the additional premiums are collected from overseas buyers in Indian rupees

c.

If the additional premiums are waived for overseas buyers

d.

If the additional risks are minor and do not require additional premiums

Discuss
Answer: (a).If the additional premiums are collected from overseas buyers in foreign currency Explanation:Insurers may provide extensions of marine insurance cover for additional risks or extended transit risks if the additional premiums are collected from overseas buyers in foreign currency. This ensures that the insurer is adequately compensated for assuming additional risks beyond the original coverage.
Q104.
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.
Q105.
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.
Q106.
According to IRDA guidelines, what is the minimum guaranteed return for unit-linked pension/annuity products on the maturity date?

a.

3.5 percent per annum

b.

4.5 percent per annum

c.

5.5 percent per annum

d.

6.5 percent per annum

Discuss
Answer: (b).4.5 percent per annum Explanation:All ULIP pension/annuity products shall offer a minimum guaranteed return of 4.5 percent per annum on the maturity date, provided all due premiums are paid.
Q107.
What option does the insured have at the time of vesting in unit-linked pension/annuity products, according to the IRDA guidelines?

a.

Full withdrawal of the accumulated fund value

b.

Partial withdrawal of the accumulated fund value

c.

Purchase an annuity with the full accumulated fund value

d.

Surrender the policy for a lump sum payment

Discuss
Answer: (c).Purchase an annuity with the full accumulated fund value Explanation:In the case of unit-linked pension/annuity products, at the time of vesting, the insured has the option to purchase an annuity with the full accumulated fund value.
Q108.
What is the maximum percentage of the surrender value that can be commuted after the lock-in period in unit-linked pension/annuity products, as per the IRDA guidelines?

a.

One-fourth

b.

One-third

c.

One-half

d.

Two-thirds

Discuss
Answer: (b).One-third Explanation:In the case of surrender, only a maximum of one-third of the surrender value can be commuted after the lock-in period, and the remaining amount must be used to purchase an annuity.
Q109.
According to IRDA guidelines, what is the treatment of top-up premiums made during the currency of the contract, except for pension/annuity products?

a.

Treated as regular premiums

b.

Treated as single premiums

c.

Treated as partial withdrawals

d.

Not allowed

Discuss
Answer: (b).Treated as single premiums Explanation:All top-up premiums made during the currency of the contract, except for pension/annuity products, must have insurance cover treating them as single premium, as per the guidelines.
Q110.
What is the maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary, as per the prescribed limits starting from the 5th policy anniversary?

a.

3.00%

b.

3.15%

c.

3.30%

d.

3.75%

Discuss
Answer: (c).3.30% Explanation:The maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary is 3.30%, as per the prescribed limits starting from the 5th policy anniversary.
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