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 15 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q141.
What is the minimum premium paying term for all limited premium unit-linked insurance products, other than single premium products, as per the guidelines?

a.

3 years

b.

5 years

c.

7 years

d.

10 years

Discuss
Answer: (b).5 years Explanation:According to the IRDA guidelines, all limited premium unit-linked insurance products, other than single premium products, shall have a premium paying term of at least 5 years.
Q142.
How are additional payments treated in regular premium / limited premium ULIPs for the purpose of insurance cover?

a.

They are treated as single premium

b.

They do not affect the insurance cover

c.

They increase the insurance cover proportionally

d.

They are treated as an investment and not considered for insurance cover

Discuss
Answer: (a).They are treated as single premium Explanation:According to the guidelines, any additional payments in regular premium / limited premium ULIPs shall be treated as single premium for the purpose of insurance cover.
Q143.
What is the minimum annual health cover requirement for regular premium contracts for individuals aged below 45 years, according to IRDA guidelines?

a.

2 times the annualized premiums or Rs. 50,000 per annum, whichever is higher

b.

5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher

c.

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

d.

105 percent of the total premiums paid

Discuss
Answer: (b).5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher Explanation:The minimum annual health cover for regular premium contracts for individuals aged below 45 years should be 5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher.
Q144.
What is the general trend of insurance premium with respect to risk?

a.

Increases with decrease in risk

b.

Decreases with increase in risk

c.

Increases with increase in risk

d.

Remains constant regardless of risk

Discuss
Answer: (c).Increases with increase in risk Explanation:The insurance premium generally increases with the increase in risk.
Q145.
What do the IRDA (Manner of receipt of premium) Regulations prescribe?

a.

Procedures for claim settlement

b.

Modes of payment of premium

c.

Guidelines for underwriting

d.

Requirements for policy cancellation

Discuss
Answer: (b).Modes of payment of premium Explanation:The IRDA (Manner of receipt of premium) Regulations prescribe the alternative modes of payment of premium.
Q146.
When does the insurer assume risk according to Section 64VB of the Insurance Act 1938?

a.

After the proposal is submitted

b.

After the policy is issued

c.

Only after the premium is received

d.

Immediately upon acceptance of the proposal

Discuss
Answer: (c).Only after the premium is received Explanation:As per Section 64VB of the Insurance Act 1938, the insurer shall be on risk only after the receipt of the premium by the insurer except in cases where premium has been paid in cash.
Q147.
What happens to a general insurance policy if the remittance made by the proposer or policyholder is not realized by the insurer?

a.

The policy remains valid

b.

The premium is refunded

c.

The policy is treated as void ab initio

d.

The insurer assumes the risk

Discuss
Answer: (c).The policy is treated as void ab initio Explanation:In the case of a policy of general insurance, where the remittance made by the proposer or the policyholder is not realized by the insurer, the policy shall be treated as void ab initio i.e. as if no policy existed.
Q148.
What determines the continuance of risk in a life insurance policy?

a.

Insurance company's decision

b.

Terms and conditions of the policy

c.

Market conditions

d.

Regulatory authority's guidelines

Discuss
Answer: (b).Terms and conditions of the policy Explanation:In the case of a life insurance policy, the continuance of the risk or otherwise shall depend on the terms and conditions of the policy entered into.
Q149.
Under what circumstances do insurers not have 'non-receipt of premium or non-realization of cheque' as a defence against payment of compensation to the third party?

a.

In case of life insurance policies

b.

In case of marine insurance policies

c.

Under the Motor Vehicles Act

d.

Under the Insurance Act 1938

Discuss
Answer: (c).Under the Motor Vehicles Act Explanation:Under the Motor Vehicles Act, insurers do not have ‘non-receipt of premium or non-realization of cheque’ as a defence against payment of compensation to the third party.
Q150.
What provision allows relaxation to the provisions of section 64 VB (I) for certain categories of insurance?

a.

IRDA guidelines

b.

Insurance Act 1938

c.

Section 64VB of the Insurance Act

d.

Insurance Regulations

Discuss
Answer: (c).Section 64VB of the Insurance Act Explanation:There is relaxation to the provisions of section 64 VB (I) for certain categories of insurance.
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