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.
In the context of micro-insurance, what is the role of micro finance institutions (MFIs)?

a.

They provide investment advice to policyholders.

b.

They act as intermediaries in selling insurance products.

c.

They solely focus on financial services and not insurance.

d.

They assess risks and determine premium rates.

Discuss
Answer: (b).They act as intermediaries in selling insurance products. Explanation:Many insurance companies tie up with micro finance institutions (MFIs) in rural areas to promote micro-insurance products, indicating that MFIs play a role as intermediaries in selling these insurance products.
Q102.
What are some scenarios where micro-insurance can be beneficial?

a.

Luxury item protection

b.

Loss of income due to job change

c.

Death of the bread earner, funeral expenses, and asset risks

d.

Home decoration coverage

Discuss
Answer: (c).Death of the bread earner, funeral expenses, and asset risks Explanation:There are scenarios where micro-insurance can be beneficial, including death of the bread earner, funeral expenses, loss of small-scale assets due to perils, livestock damage, and crop damage.
Q103.
What role does the insurance company play in micro-insurance?

a.

Only collects premiums from members

b.

Acts as an intermediary and maintains the common pool

c.

Determines premium rates based on individual risks

d.

Has no involvement in pooling risks among members

Discuss
Answer: (b).Acts as an intermediary and maintains the common pool Explanation:Insurance company acts as an intermediary, bringing together members exposed to the same risk, and maintains a common pool from which compensation is paid when any member suffers a loss.
Q104.
What are some risks covered under micro-insurance?

a.

Luxury item loss

b.

Job-related accidents

c.

Risks to assets, illness, injury, and death

d.

Financial market fluctuations

Discuss
Answer: (c).Risks to assets, illness, injury, and death Explanation:Risks covered under micro-insurance include life and health risks (illness, injury, or death) and risks to which assets are exposed.
Q105.
What happens to a general insurance policy if the remittance made by the proposer or policyholder is not realized by the insurer?

a.

The policy remains valid

b.

The premium is refunded

c.

The policy is treated as void ab initio

d.

The insurer assumes the risk

Discuss
Answer: (c).The policy is treated as void ab initio Explanation:In the case of a policy of general insurance, where the remittance made by the proposer or the policyholder is not realized by the insurer, the policy shall be treated as void ab initio i.e. as if no policy existed.
Q106.
What determines the continuance of risk in a life insurance policy?

a.

Insurance company's decision

b.

Terms and conditions of the policy

c.

Market conditions

d.

Regulatory authority's guidelines

Discuss
Answer: (b).Terms and conditions of the policy Explanation:In the case of a life insurance policy, the continuance of the risk or otherwise shall depend on the terms and conditions of the policy entered into.
Q107.
Under what circumstances do insurers not have 'non-receipt of premium or non-realization of cheque' as a defence against payment of compensation to the third party?

a.

In case of life insurance policies

b.

In case of marine insurance policies

c.

Under the Motor Vehicles Act

d.

Under the Insurance Act 1938

Discuss
Answer: (c).Under the Motor Vehicles Act Explanation:Under the Motor Vehicles Act, insurers do not have ‘non-receipt of premium or non-realization of cheque’ as a defence against payment of compensation to the third party.
Q108.
What provision allows relaxation to the provisions of section 64 VB (I) for certain categories of insurance?

a.

IRDA guidelines

b.

Insurance Act 1938

c.

Section 64VB of the Insurance Act

d.

Insurance Regulations

Discuss
Answer: (c).Section 64VB of the Insurance Act Explanation:There is relaxation to the provisions of section 64 VB (I) for certain categories of insurance.
Q109.
What term is related to insurance characterized by low premium and designed to serve low-income group people?

a.

Insurance

b.

General insurance

c.

Micro-insurance

d.

Life insurance

Discuss
Answer: (c).Micro-insurance Explanation:Micro-insurance is a type of insurance tailored for low-income individuals, featuring low premiums to make it accessible to this demographic.
Q110.
In which country did the concept of micro-insurance originate?

a.

India

b.

The United States

c.

Pakistan

d.

Bangladesh

Discuss
Answer: (d).Bangladesh Explanation:Bangladesh is the country where the concept of micro-insurance originated.
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