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 22 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q211.
What determines the policy term in the case of whole life plans according to the guidelines?

a.

Premium amount

b.

Seventy minus the age at entry

c.

Investment returns

d.

Age of the life assured

Discuss
Answer: (b).Seventy minus the age at entry Explanation:In the case of whole life plans, the policy term is determined as seventy minus the age at entry. The guidelines specify this calculation for whole life insurance plans.
Q212.
What is the purpose of ensuring a defined quantum of the sum assured in the case of single premium policies, according to the guidelines?

a.

To determine the premium

b.

To eliminate the need for life insurance coverage

c.

To provide a discount on the premium

d.

To ensure at least a percentage of the single premium as the sum assured

Discuss
Answer: (d).To ensure at least a percentage of the single premium as the sum assured Explanation:The purpose of ensuring a defined quantum of the sum assured in the case of single premium policies, according to the guidelines, is to ensure at least a percentage of the single premium as the sum assured. This ensures that there is a meaningful life insurance element in the policy.
Q213.
How is the sum assured related to the premium in unit-linked insurance plans, as per the guidelines?

a.

Sum assured determines the premium

b.

Premium determines the sum assured

c.

Sum assured and premium are unrelated

d.

Sum assured is a fixed amount in all cases

Discuss
Answer: (c).Sum assured and premium are unrelated Explanation:In unit-linked insurance plans, unlike in traditional products, the sum assured does not determine the premium. The guidelines specify that the sum assured and premium are unrelated in unit-linked insurance plans.
Q214.
What is the formula for calculating the minimum mortality cover in unit-linked products, as per the guidelines?

a.

T−APT−AP

b.

T×APT×AP

c.

T÷APT÷AP

d.

T+APT+AP

Discuss
Answer: (b).T×APT×AP Explanation:The formula for calculating the minimum mortality cover in unit-linked products is T×APT×AP, where T is the Policy Term chosen by the policyholder, and AP is the Annualized premium selected by the policyholder at the inception of the policy.
Q215.
In the case of Whole Life Products, how is T (Policy Term) determined in the formula for calculating the minimum mortality cover?

a.

T=APT=AP

b.

T=70T=70

c.

T=SPT=SP

d.

T=70−age at entryT=70−age at entry

Discuss
Answer: (d).T=70−age at entryT=70−age at entry Explanation:In the case of Whole Life Products, T (Policy Term) is determined as T=70−age at entryT=70−age at entry in the formula for calculating the minimum mortality cover.
Q216.
What is the minimum annual health cover for Regular Premium (RP) contracts for individuals below 45 years of age?

a.

2 times the annualized premiums

b.

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

c.

Rs. 75,000 per annum

d.

10 times the annualized premiums

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 (RP) contracts for individuals below 45 years of age is 5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher.
Q217.
What is the minimum annual health cover for Regular Premium (RP) contracts for individuals aged 45 years and above?

a.

3 times the annualized premiums

b.

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

c.

Rs. 50,000 per annum

d.

8 times the annualized premiums

Discuss
Answer: (b).5 times the annualized premiums or Rs. 75,000 per annum, whichever is higher Explanation:The minimum annual health cover for Regular Premium (RP) contracts for individuals aged 45 years and above is 5 times the annualized premiums or Rs. 75,000 per annum, whichever is higher.
Q218.
What must top-up premiums paid during the contract have, according to the guidelines?

a.

No insurance cover

b.

Health insurance cover

c.

Mortgage insurance cover

d.

Insurance cover treating them as single premium

Discuss
Answer: (d).Insurance cover treating them as single premium Explanation:According to the guidelines, all top-up premiums paid during the contract, except for pension/annuity products, must have insurance cover treating them as single premium.
Q219.
When can the sum assured payable on death be reduced during the term of the policy, according to the guidelines?

a.

At any point of time

b.

Only during the first two years of the policy

c.

Only during the last two years of the policy

d.

Only during the two-year period immediately preceding the death of the life assured

Discuss
Answer: (d).Only during the two-year period immediately preceding the death of the life assured Explanation:According to the guidelines, the sum assured payable on death shall not be reduced at any point of time during the term of the policy except to the extent of the partial withdrawals made during the two-year period immediately preceding the death of the life assured.
Q220.
What settlement options may be allowed after the expiry of the policy term, according to the guidelines?

a.

Extension of the policy term

b.

Surrender of the policy

c.

Only death benefit payout

d.

Only settlement options clearly outlined at the commencement of the contract

Discuss
Answer: (d).Only settlement options clearly outlined at the commencement of the contract Explanation:According to the guidelines, no cover should be extended after the expiry of the policy term, and only settlement options (which are clearly outlined at the commencement of the contract) may be allowed.
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