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 12 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q111.
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.
Q112.
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.
Q113.
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.
Q114.
Which is not a negotiable instrument?

a.

Debit card

b.

Demand draft

c.

Pay order

d.

Cheque

Discuss
Answer: (a).Debit card Explanation:A debit card is not a negotiable instrument; it functions as an electronic payment method but lacks the negotiability and transferability of traditional negotiable instruments.
Q115.
In simple terms, what does ‘a void ab initio policy’ mean?

a.

Policy exists

b.

Policy does not exist

c.

Risk of the insurer is deferred

d.

Risk of the insurer commences

Discuss
Answer: (b).Policy does not exist Explanation:A "void ab initio policy" means the policy is deemed nonexistent from the beginning, usually due to some fundamental flaw or legal violation.
Q116.
When does the risk commence if the premium is tendered by postal money order?

a.

Date when the money order is received

b.

Date on which the money order is booked

c.

Depends on the terms and conditions of the policy

d.

None of the above

Discuss
Answer: (b).Date on which the money order is booked Explanation:If the premium is tendered by postal money order, the risk typically commences on the date when the money order is booked, as per standard insurance practices.
Q117.
How often may the IRDA prescribe or revise the obligations as specified in the Regulation?

a.

Once in every two years

b.

Once in every five years

c.

Once in every financial year

d.

As and when requested by insurers

Discuss
Answer: (b).Once in every five years Explanation:The IRDA may normally, once in every five years, prescribe or revise the obligations as specified in this Regulation.
Q118.
What is the percentage of rural sector obligations for a general insurer in the eighth financial year?

a.

Five percent

b.

Six percent

c.

Seven percent

d.

Eight percent

Discuss
Answer: (b).Six percent Explanation:In the eighth financial year, a general insurer is obligated to fulfill six percent of the total gross premium income written direct in that year for the rural sector.
Q119.
What is the obligation for all insurers in the tenth financial year in the social sector?

a.

Thirty thousand lives

b.

Forty thousand lives

c.

Fifty thousand lives

d.

Sixty thousand lives

Discuss
Answer: (c).Fifty thousand lives Explanation:In the tenth financial year, all insurers are obligated to cover fifty thousand lives for the social sector.
Q120.
What percentage of total policies written direct is required for a life insurer in the tenth financial year for rural sector obligations?

a.

Eighteen percent

b.

Nineteen percent

c.

Twenty percent

d.

Twenty-one percent

Discuss
Answer: (c).Twenty percent Explanation:In the tenth financial year, a life insurer is obligated to fulfill twenty percent of total policies written direct in that year for the rural sector.
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