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.

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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.
What is the minimum annual health cover for Regular Premium (RP) contracts for individuals aged 45 years and above?

a.

3 times the annualized premiums

b.

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

c.

Rs. 50,000 per annum

d.

8 times the annualized premiums

Discuss
Answer: (b).5 times the annualized premiums or Rs. 75,000 per annum, whichever is higher Explanation:The minimum annual health cover for Regular Premium (RP) contracts for individuals aged 45 years and above is 5 times the annualized premiums or Rs. 75,000 per annum, whichever is higher.
Q112.
What must top-up premiums paid during the contract have, according to the guidelines?

a.

No insurance cover

b.

Health insurance cover

c.

Mortgage insurance cover

d.

Insurance cover treating them as single premium

Discuss
Answer: (d).Insurance cover treating them as single premium Explanation:According to the guidelines, all top-up premiums paid during the contract, except for pension/annuity products, must have insurance cover treating them as single premium.
Q113.
When can the sum assured payable on death be reduced during the term of the policy, according to the guidelines?

a.

At any point of time

b.

Only during the first two years of the policy

c.

Only during the last two years of the policy

d.

Only during the two-year period immediately preceding the death of the life assured

Discuss
Answer: (d).Only during the two-year period immediately preceding the death of the life assured Explanation:According to the guidelines, the sum assured payable on death shall not be reduced at any point of time during the term of the policy except to the extent of the partial withdrawals made during the two-year period immediately preceding the death of the life assured.
Q114.
What settlement options may be allowed after the expiry of the policy term, according to the guidelines?

a.

Extension of the policy term

b.

Surrender of the policy

c.

Only death benefit payout

d.

Only settlement options clearly outlined at the commencement of the contract

Discuss
Answer: (d).Only settlement options clearly outlined at the commencement of the contract Explanation:According to the guidelines, no cover should be extended after the expiry of the policy term, and only settlement options (which are clearly outlined at the commencement of the contract) may be allowed.
Q115.
What is the treatment of additional payments in regular premium/limited premium ULIPs, according to the guidelines?

a.

They are not allowed

b.

They are treated as single premium

c.

They increase the sum assured

d.

They reduce the policy term

Discuss
Answer: (b).They are treated as single premium Explanation:According to the guidelines, all regular premium/limited premium ULIPs will have uniform premiums, and any additional payments will be treated as single premium for the purpose of insurance cover.
Q116.
What is the minimum policy term mandated by the IRDA Guidelines for every ULIP?

a.

3 years

b.

5 years

c.

7 years

d.

10 years

Discuss
Answer: (b).5 years Explanation:The IRDA Guidelines mandate that every ULIP shall have a minimum policy term of 5 years.
Q117.
How long is the lock-in period for ULIP plans according to the guidelines?

a.

2 years

b.

3 years

c.

5 years

d.

10 years

Discuss
Answer: (c).5 years Explanation:The lock-in period for ULIP plans is 5 years during which no partial withdrawals or surrenders are allowed.
Q118.
In which countries are the returns of a unit-linked policy tax-free if the policy duration is for at least a certain number of years?

a.

Germany and France

b.

United States and Canada

c.

Japan and Australia

d.

United Kingdom and India

Discuss
Answer: (a).Germany and France Explanation:In Germany, the returns of a unit-linked policy are tax-free if the policy duration is for at least 12 years. In France, the duration of the unit-linked policy must be at least 8 years to qualify for tax relief.
Q119.
What is meant by the minimum term period of a life insurance policy?

a.

The duration after which the policyholder can make partial withdrawals

b.

The duration during which the policyholder cannot make any changes to the policy

c.

The minimum duration for which the policy remains in force

d.

The duration for which the policyholder receives guaranteed returns

Discuss
Answer: (c).The minimum duration for which the policy remains in force Explanation:The minimum term period of a life insurance policy refers to the minimum duration for which the policy remains in force.
Q120.
What is the purpose of guarantees on policy benefits in unit-linked plans?

a.

To provide additional benefits without any conditions

b.

To ensure a fixed rate of return on the investment

c.

To protect the policyholder from market fluctuations

d.

To make the policy more expensive for the policyholder

Discuss
Answer: (c).To protect the policyholder from market fluctuations Explanation:Guarantees on policy benefits in unit-linked plans aim to protect the policyholder from market fluctuations.
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