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 19 of 32

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Q181.
What is the maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary, as per the prescribed limits starting from the 5th policy anniversary?

a.

3.00%

b.

3.15%

c.

3.30%

d.

3.75%

Discuss
Answer: (c).3.30% Explanation:The maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary is 3.30%, as per the prescribed limits starting from the 5th policy anniversary.
Q182.
According to the prescribed limits starting from the 5th policy anniversary, what is the maximum reduction in yield for policies with an annualized premium paid for the 15th policy anniversary and thereafter?

a.

2.50%

b.

2.75%

c.

3.00%

d.

2.25%

Discuss
Answer: (d).2.25% Explanation:The maximum reduction in yield for policies with an annualized premium paid for the 15th policy anniversary and thereafter is 2.25%, as per the prescribed limits starting from the 5th policy anniversary.
Q183.
What is the net reduction in yield at maturity for policies with a term less than or equal to 10 years, according to the IRDA guidelines?

a.

2.25%

b.

2.50%

c.

3.00%

d.

3.15%

Discuss
Answer: (c).3.00% Explanation:The net reduction in yield at maturity for policies with a term less than or equal to 10 years shall not be more than 3.00%, as per the IRDA guidelines.
Q184.
What is the maximum loan amount that can be sanctioned under any ULIP policy, where equity accounts for more than 60% of the total share, according to the IRDA guidelines?

a.

30% of the net asset value

b.

40% of the net asset value

c.

50% of the net asset value

d.

60% of the net asset value

Discuss
Answer: (b).40% of the net asset value Explanation:The maximum loan amount that can be sanctioned under any ULIP policy, where equity accounts for more than 60% of the total share, shall not exceed 40% of the net asset value, according to the IRDA guidelines.
Q185.
What distinguishes a single premium ULIP policy from a regular premium ULIP policy?

a.

Frequency of premium payment

b.

Premium amount

c.

Investment options

d.

Policy duration

Discuss
Answer: (a).Frequency of premium payment Explanation:In the case of a single premium ULIP policy, the policyholder makes one lump sum premium payment at the beginning of the policy. In the case of a regular premium ULIP policy, the policyholder can choose the frequency at which they want to pay premiums, such as monthly, quarterly, half-yearly, or annually.
Q186.
How can the policyholder vary premiums and benefits over the lifetime in unit-linked contracts?

a.

By investing in debt securities

b.

By choosing the fund for investment

c.

By opting for a single premium policy

d.

By selecting a fixed premium amount

Discuss
Answer: (b).By choosing the fund for investment Explanation:Unit-linked contracts are designed to allow the policyholder to vary premiums and benefits over their lifetime. The policyholder can choose the fund in which their premiums will be invested, providing flexibility in investment.
Q187.
What is a key difference between traditional insurance plans and unit-linked plans?

a.

Premium frequency

b.

Policy duration

c.

Fund selection by the policyholder

d.

Level of coverage

Discuss
Answer: (c).Fund selection by the policyholder Explanation:In traditional insurance plans, the policyholder has no say in choosing the type of securities in which their funds are invested. In unit-linked plans, the policyholder can choose the fund (asset type) in which their premiums will be invested.
Q188.
What does the policyholder have the flexibility to do once the ULIP contract is issued?

a.

Change the policy duration

b.

Increase the premium amount

c.

Decrease the level of coverage

d.

Choose the frequency of premium payment

Discuss
Answer: (b).Increase the premium amount Explanation:Once the ULIP contract is issued, the policyholder has the flexibility to contribute additional premiums (as top-up premium) if any surplus monies are available.
Q189.
What option is available to the policyholder in a ULIP to safeguard the value of their funds in difficult times?

a.

Partial withdrawal

b.

Decreasing the sum assured

c.

Switching between funds

d.

Opting for a single premium policy

Discuss
Answer: (c).Switching between funds Explanation:In a ULIP, the policyholder has the option to switch from one fund to another, which helps safeguard the value of their funds in difficult times.
Q190.
What is the definition of linked business according to IRDA (Registration of Indian Insurance Companies) Regulations, 2000?

a.

Contracts related to health insurance

b.

Contracts with fixed benefits

c.

Contracts under which benefits are determined by underlying assets or approved index

d.

Contracts with variable premiums

Discuss
Answer: (c).Contracts under which benefits are determined by underlying assets or approved index Explanation:Regulation 2 (i) of IRDA (Registration of Indian Insurance Companies) Regulations, 2000 defines linked business as "life insurance contracts or health insurance contracts under which benefits are wholly or partly to be determined by reference to the value of underlying assets or any approved index."
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