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.
What is the percentage of rural sector obligations for general insurers in the financial year 2008-09?

a.

Five percent

b.

Six percent

c.

Seven percent

d.

Eight percent

Discuss
Answer: (c).Seven percent Explanation:In the financial year 2008-09, general insurers are obligated to fulfill seven percent of the total gross premium income written direct in that year for the rural sector.
Q122.
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.
Q123.
What is the basis for calculating compliance with rural sector obligations for both general and life companies?

a.

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 rural sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q124.
How are social sector obligations determined for general insurers in the financial year 2008-09?

a.

Fixed number of lives

b.

Average number of lives covered in 2002-03 to 2004-05

c.

Ten percent increase over the previous year

d.

Proportional to the insurer's total premium income

Discuss
Answer: (b).Average number of lives covered in 2002-03 to 2004-05 Explanation:For the financial year 2008-09, social sector obligations for general insurers are determined based on the average number of lives covered in the years 2002-03 to 2004-05.
Q125.
Is re-insurance premium included while calculating the obligations of insurers for the rural and social sectors?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't Say

Discuss
Answer: (b).No Explanation:Re-insurance premium is not included while calculating the obligations of insurers for the rural and social sectors.
Q126.
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.
Q127.
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.
Q128.
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.
Q129.
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.
Q130.
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.
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