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 14 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q131.
When is the premium typically paid by the insured?

a.

At the end of the insurance contract

b.

Only once at the commencement of the contract

c.

At the commencement of the contract and later throughout the term at periodical intervals

d.

Only when a claim is made

Discuss
Answer: (c).At the commencement of the contract and later throughout the term at periodical intervals Explanation:The premium is typically paid by the insured at the commencement of the insurance contract and later throughout the term at periodical intervals as per the policy terms and conditions. This ensures continuous coverage under the insurance policy.
Q132.
What factors generally influence the insurance premium?

a.

The age of the insured

b.

The type of insurance product

c.

The location of the insured

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Various factors can influence the insurance premium, including the age of the insured, the type of insurance product, the location of the insured, and other risk factors. Insurance premium generally increases with an increase in risk.
Q133.
According to IRDA regulations, what are the approved methods for premium payment?

a.

Cash only

b.

Cheque or demand draft only

c.

Any recognised banking negotiable instrument, cash, postal money order, credit/debit card, cash deposit, bank guarantee, direct credits, online fund transfer, or any other methods approved by IRDA

d.

Only online fund transfer from the bank account through the internet

Discuss
Answer: (c).Any recognised banking negotiable instrument, cash, postal money order, credit/debit card, cash deposit, bank guarantee, direct credits, online fund transfer, or any other methods approved by IRDA Explanation:According to IRDA regulations, premium payment to an insurer may be made by any recognised banking negotiable instrument, cash, postal money order, credit/debit card, cash deposit, bank guarantee, direct credits, online fund transfer, or any other methods approved by IRDA. These methods provide flexibility and convenience to policyholders for paying their premiums.
Q134.
According to Section 64 VB of the Insurance Act, when does the risk on the part of the insurer begin?

a.

When the policyholder submits the proposal form

b.

When the insurer receives the premium

c.

When the policy is issued

d.

When the claim is settled

Discuss
Answer: (b).When the insurer receives the premium Explanation:According to Section 64 VB of the Insurance Act, the risk on the part of the insurer begins only after it receives the premium. This means that the insurer assumes the risk associated with the insurance policy only when the premium payment is received.
Q135.
What happens if the premium is not realized by the insurer for a general insurance policy?

a.

The policy remains in force

b.

The policy is treated as void ab initio

c.

The policyholder receives a grace period to pay the premium

d.

The policy is converted into a life insurance policy

Discuss
Answer: (b).The policy is treated as void ab initio Explanation:If the premium is not realized by the insurer for a general insurance policy, the policy shall be treated as void ab initio, meaning as if no policy existed. This emphasizes the importance of premium payment for the validity of insurance coverage.
Q136.
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.
Q137.
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.
Q138.
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.
Q139.
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.
Q140.
How are policyholders charged for guaranteed benefits in unit-linked plans?

a.

There is no additional charge for guaranteed benefits

b.

The charges are explicitly stated in the policy document

c.

The charges are deducted from the fund value

d.

The charges are paid separately by the insurer

Discuss
Answer: (b).The charges are explicitly stated in the policy document Explanation:Policyholders are specifically levied for guaranteed benefits either by an explicit cost or by an implied charge, which is explicitly stated in the policy document.
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