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.
What are some scenarios where micro-insurance can be beneficial?

a.

Luxury item protection

b.

Loss of income due to job change

c.

Death of the bread earner, funeral expenses, and asset risks

d.

Home decoration coverage

Discuss
Answer: (c).Death of the bread earner, funeral expenses, and asset risks Explanation:There are scenarios where micro-insurance can be beneficial, including death of the bread earner, funeral expenses, loss of small-scale assets due to perils, livestock damage, and crop damage.
Q132.
What role does the insurance company play in micro-insurance?

a.

Only collects premiums from members

b.

Acts as an intermediary and maintains the common pool

c.

Determines premium rates based on individual risks

d.

Has no involvement in pooling risks among members

Discuss
Answer: (b).Acts as an intermediary and maintains the common pool Explanation:Insurance company acts as an intermediary, bringing together members exposed to the same risk, and maintains a common pool from which compensation is paid when any member suffers a loss.
Q133.
What are some risks covered under micro-insurance?

a.

Luxury item loss

b.

Job-related accidents

c.

Risks to assets, illness, injury, and death

d.

Financial market fluctuations

Discuss
Answer: (c).Risks to assets, illness, injury, and death Explanation:Risks covered under micro-insurance include life and health risks (illness, injury, or death) and risks to which assets are exposed.
Q134.
Which of the following is not a product offered under micro-insurance?

a.

Crop insurance

b.

Livestock/cattle insurance

c.

Home insurance

d.

Health insurance

Discuss
Answer: (c).Home insurance Explanation:There are many products offered under micro-insurance, but home insurance is not.
Q135.
In what situations can micro-insurance be particularly beneficial?

a.

During times of luxury purchases

b.

Only for high-income individuals

c.

When breadwinners die or families face high-interest rate loans during illnesses

d.

Only for farmers during bad harvests

Discuss
Answer: (c).When breadwinners die or families face high-interest rate loans during illnesses Explanation:Micro-insurance is useful when the breadwinner of the family dies or when families are forced to take loans at high interest rates in case of illnesses.
Q136.
What is the ultimate aim of microfinance?

a.

Generating profits for financial institutions

b.

Providing high-interest loans to low-income individuals

c.

Reducing poverty and eliminating it completely

d.

Focusing on luxury financial products

Discuss
Answer: (c).Reducing poverty and eliminating it completely Explanation:The ultimate aim of microfinance is to reduce poverty and eventually eliminate it completely.
Q137.
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.
Q138.
Who is credited with conceiving the idea of forming a microcredit institution during a great famine in Bangladesh?

a.

Bill Clinton

b.

Muhammad Yunus

c.

Hillary Rodham Clinton

d.

Grameen Bank

Discuss
Answer: (b).Muhammad Yunus Explanation:During a great famine in Bangladesh in 1974, Prof. Muhammad Yunus conceived the idea of forming a bank for exclusive micro-credit to the poor, leading to the establishment of Grameen Bank in 1983.
Q139.
Which of the following is the most well-known international example of a microcredit institution?

a.

ASA

b.

Alternativa Solidaria

c.

Grameen Bank

d.

United Nations Commissioner for Refugees

Discuss
Answer: (c).Grameen Bank Explanation:Grameen Bank of Bangladesh as the most well-known international example of a microcredit institution.
Q140.
When did the concept of micro-financing receive global appreciation?

a.

1960s

b.

1970s

c.

1980s

d.

1990s and the beginning of the present century

Discuss
Answer: (d).1990s and the beginning of the present century Explanation:The phenomenon of micro-financing received global appreciation by the end of the 1990s and the beginning of the present century.
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