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.

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Regulations on Conduct of Business MCQs | Page 2 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q11.
What does the term "proportionate percentage" mean in the context of the first financial year for social sector obligations?

a.

A fixed percentage determined by the IRDA

b.

A percentage equivalent to the total population

c.

A percentage based on the period of operation

d.

A percentage determined by the insurer

Discuss
Answer: (c).A percentage based on the period of operation Explanation:In the first financial year, where the period of operation is less than twelve months, the proportionate percentage or number of lives shall be undertaken for social sector obligations.
Q12.
What additional obligation is specified for a general insurer in the context of the social sector?

a.

Coverage for spastic persons

b.

Insurance for crops

c.

Providing disability benefits

d.

Coverage for economically vulnerable classes

Discuss
Answer: (b).Insurance for crops Explanation:In the case of a general insurer, the obligations specified for the social sector shall include insurance for crops.
Q13.
How often may the IRDA prescribe or revise the obligations as specified in the Regulation?

a.

Once in every two years

b.

Once in every five years

c.

Once in every financial year

d.

As and when requested by insurers

Discuss
Answer: (b).Once in every five years Explanation:The IRDA may normally, once in every five years, prescribe or revise the obligations as specified in this Regulation.
Q14.
What is the percentage of rural sector obligations for a general insurer in the eighth financial year?

a.

Five percent

b.

Six percent

c.

Seven percent

d.

Eight percent

Discuss
Answer: (b).Six percent Explanation:In the eighth financial year, a general insurer is obligated to fulfill six percent of the total gross premium income written direct in that year for the rural sector.
Q15.
What is the obligation for all insurers in the tenth financial year in the social sector?

a.

Thirty thousand lives

b.

Forty thousand lives

c.

Fifty thousand lives

d.

Sixty thousand lives

Discuss
Answer: (c).Fifty thousand lives Explanation:In the tenth financial year, all insurers are obligated to cover fifty thousand lives for the social sector.
Q16.
What percentage of total policies written direct is required for a life insurer in the tenth financial year for rural sector obligations?

a.

Eighteen percent

b.

Nineteen percent

c.

Twenty percent

d.

Twenty-one percent

Discuss
Answer: (c).Twenty percent Explanation:In the tenth financial year, a life insurer is obligated to fulfill twenty percent of total policies written direct in that year for the rural sector.
Q17.
What percentage of total policies written direct is required for a life insurer in the financial year 2008-09 for rural sector obligations?

a.

Twenty-two percent

b.

Twenty-three percent

c.

Twenty-four percent

d.

Twenty-five percent

Discuss
Answer: (d).Twenty-five percent Explanation:In the financial year 2008-09, a life insurer is obligated to fulfill twenty-five percent of total policies written direct in that year for the rural sector.
Q18.
What is the percentage of rural sector obligations for general insurers in the financial year 2008-09?

a.

Five percent

b.

Six percent

c.

Seven percent

d.

Eight percent

Discuss
Answer: (c).Seven percent Explanation:In the financial year 2008-09, general insurers are obligated to fulfill seven percent of the total gross premium income written direct in that year for the rural sector.
Q19.
What is the basis for calculating compliance with rural sector obligations for both general and life companies?

a.

Total assets

b.

Sale of products conforming to micro-insurance regulations

c.

Number of policies issued

d.

Premium income

Discuss
Answer: (b).Sale of products conforming to micro-insurance regulations Explanation:Compliance with rural sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q20.
How are social sector obligations determined for general insurers in the financial year 2008-09?

a.

Fixed number of lives

b.

Average number of lives covered in 2002-03 to 2004-05

c.

Ten percent increase over the previous year

d.

Proportional to the insurer's total premium income

Discuss
Answer: (b).Average number of lives covered in 2002-03 to 2004-05 Explanation:For the financial year 2008-09, social sector obligations for general insurers are determined based on the average number of lives covered in the years 2002-03 to 2004-05.
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