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 18 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q171.
What is the revised lock-in period for all Unit Linked Products according to the IRDA guidelines effective from September 2010?

a.

Three years

b.

Four years

c.

Five years

d.

Six years

Discuss
Answer: (c).Five years Explanation:The three-year lock-in period for all Unit Linked Products was increased to a period of five years, including top-up premiums.
Q172.
How are overall charges distributed in ULIPs during the lock-in period, according to the IRDA guidelines?

a.

Front-loaded, with higher charges in the initial years

b.

Back-loaded, with higher charges in the later years

c.

Distributed evenly during the lock-in period

d.

Charges vary based on the market conditions

Discuss
Answer: (c).Distributed evenly during the lock-in period Explanation:According to the guidelines, insurers shall distribute the overall charges in ULIPs in an even fashion during the lock-in period.
Q173.
What is the minimum mortality cover requirement for unit-linked products, as per the IRDA guidelines?

a.

150 percent of single premium

b.

125 percent of single premium for age below 45 and 110 percent for age 45 and above

c.

10 times the annualized premiums or 7 times for age 45 and above

d.

105 percent of total premiums paid

Discuss
Answer: (b).125 percent of single premium for age below 45 and 110 percent for age 45 and above Explanation:The minimum mortality cover for unit-linked products should be 125 percent of single premium for age below 45 and 110 percent for age 45 and above.
Q174.
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.
Q175.
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.
Q176.
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.
Q177.
According to IRDA guidelines, what is the minimum guaranteed return for unit-linked pension/annuity products on the maturity date?

a.

3.5 percent per annum

b.

4.5 percent per annum

c.

5.5 percent per annum

d.

6.5 percent per annum

Discuss
Answer: (b).4.5 percent per annum Explanation:All ULIP pension/annuity products shall offer a minimum guaranteed return of 4.5 percent per annum on the maturity date, provided all due premiums are paid.
Q178.
What option does the insured have at the time of vesting in unit-linked pension/annuity products, according to the IRDA guidelines?

a.

Full withdrawal of the accumulated fund value

b.

Partial withdrawal of the accumulated fund value

c.

Purchase an annuity with the full accumulated fund value

d.

Surrender the policy for a lump sum payment

Discuss
Answer: (c).Purchase an annuity with the full accumulated fund value Explanation:In the case of unit-linked pension/annuity products, at the time of vesting, the insured has the option to purchase an annuity with the full accumulated fund value.
Q179.
What is the maximum percentage of the surrender value that can be commuted after the lock-in period in unit-linked pension/annuity products, as per the IRDA guidelines?

a.

One-fourth

b.

One-third

c.

One-half

d.

Two-thirds

Discuss
Answer: (b).One-third Explanation:In the case of surrender, only a maximum of one-third of the surrender value can be commuted after the lock-in period, and the remaining amount must be used to purchase an annuity.
Q180.
According to IRDA guidelines, what is the treatment of top-up premiums made during the currency of the contract, except for pension/annuity products?

a.

Treated as regular premiums

b.

Treated as single premiums

c.

Treated as partial withdrawals

d.

Not allowed

Discuss
Answer: (b).Treated as single premiums Explanation:All top-up premiums made during the currency of the contract, except for pension/annuity products, must have insurance cover treating them as single premium, as per the guidelines.
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