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 13 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q121.
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.
Q122.
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.
Q123.
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.
Q124.
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.
Q125.
Who has the authority to prescribe or revise the obligations specified in these regulations?

a.

Insurance companies

b.

Ministry of Finance

c.

Insurance Regulatory and Development Authority

d.

National Rural Development Authority

Discuss
Answer: (c).Insurance Regulatory and Development Authority Explanation:The Insurance Regulatory and Development Authority (IRDA) has the authority to prescribe or revise the obligations specified in these regulations.
Q126.
How is compliance with social sector obligations determined for both general and life companies?

a.

Percentage of total assets

b.

Sale of products conforming to micro-insurance regulations

c.

Number of policies issued

d.

Premium income

Discuss
Answer: (b).Sale of products conforming to micro-insurance regulations Explanation:Compliance with social sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q127.
Where should insurers submit returns regarding rural and social sector obligations?

a.

To the Ministry of Finance

b.

To the National Rural Development Authority

c.

As part of the financial returns under IRDA's regulations

d.

To the Insurance Regulatory and Development Authority (IRDA) directly

Discuss
Answer: (c).As part of the financial returns under IRDA's regulations Explanation:Every insurer should submit returns regarding rural and social sector obligations as part of the financial returns under the Insurance Regulatory and Development Authority (IRDA) (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002.
Q128.
What role does micro-insurance play in the growing Indian insurance industry?

a.

Dominant role

b.

Limited role

c.

Negligible role

d.

No role

Discuss
Answer: (c).Negligible role Explanation:When it comes to micro-insurance, the picture is a mere dot on the canvas, suggesting that micro-insurance plays a negligible role in the Indian insurance industry.
Q129.
What is the primary goal of micro-insurance?

a.

Maximizing profits for insurance companies

b.

Providing insurance coverage to affluent individuals

c.

Offering insurance products exclusively for urban areas

d.

Providing insurance cover to low-income individuals at affordable rates

Discuss
Answer: (d).Providing insurance cover to low-income individuals at affordable rates Explanation:The primary goal of micro-insurance is to provide insurance cover to poor and low-income people at affordable rates.
Q130.
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.
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