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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Regulations on Conduct of Business. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Regulations on Conduct of Business knowledge to the test? Let's get started with our carefully curated MCQs!

Regulations on Conduct of Business MCQs | Page 23 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q221.
What is the treatment of additional payments in regular premium/limited premium ULIPs, according to the guidelines?

a.

They are not allowed

b.

They are treated as single premium

c.

They increase the sum assured

d.

They reduce the policy term

Discuss
Answer: (b).They are treated as single premium Explanation:According to the guidelines, all regular premium/limited premium ULIPs will have uniform premiums, and any additional payments will be treated as single premium for the purpose of insurance cover.
Q222.
What is the minimum policy term mandated by the IRDA Guidelines for every ULIP?

a.

3 years

b.

5 years

c.

7 years

d.

10 years

Discuss
Answer: (b).5 years Explanation:The IRDA Guidelines mandate that every ULIP shall have a minimum policy term of 5 years.
Q223.
How long is the lock-in period for ULIP plans according to the guidelines?

a.

2 years

b.

3 years

c.

5 years

d.

10 years

Discuss
Answer: (c).5 years Explanation:The lock-in period for ULIP plans is 5 years during which no partial withdrawals or surrenders are allowed.
Q224.
In which countries are the returns of a unit-linked policy tax-free if the policy duration is for at least a certain number of years?

a.

Germany and France

b.

United States and Canada

c.

Japan and Australia

d.

United Kingdom and India

Discuss
Answer: (a).Germany and France Explanation:In Germany, the returns of a unit-linked policy are tax-free if the policy duration is for at least 12 years. In France, the duration of the unit-linked policy must be at least 8 years to qualify for tax relief.
Q225.
What is meant by the minimum term period of a life insurance policy?

a.

The duration after which the policyholder can make partial withdrawals

b.

The duration during which the policyholder cannot make any changes to the policy

c.

The minimum duration for which the policy remains in force

d.

The duration for which the policyholder receives guaranteed returns

Discuss
Answer: (c).The minimum duration for which the policy remains in force Explanation:The minimum term period of a life insurance policy refers to the minimum duration for which the policy remains in force.
Q226.
What is the purpose of guarantees on policy benefits in unit-linked plans?

a.

To provide additional benefits without any conditions

b.

To ensure a fixed rate of return on the investment

c.

To protect the policyholder from market fluctuations

d.

To make the policy more expensive for the policyholder

Discuss
Answer: (c).To protect the policyholder from market fluctuations Explanation:Guarantees on policy benefits in unit-linked plans aim to protect the policyholder from market fluctuations.
Q227.
How are policyholders charged for guaranteed benefits in unit-linked plans?

a.

There is no additional charge for guaranteed benefits

b.

The charges are explicitly stated in the policy document

c.

The charges are deducted from the fund value

d.

The charges are paid separately by the insurer

Discuss
Answer: (b).The charges are explicitly stated in the policy document Explanation:Policyholders are specifically levied for guaranteed benefits either by an explicit cost or by an implied charge, which is explicitly stated in the policy document.
Q228.
What is the duration of the lock-in period for all Unit Linked Products, including Top-Up premiums?

a.

2 years

b.

3 years

c.

5 years

d.

7 years

Discuss
Answer: (c).5 years Explanation:The lock-in period for all Unit Linked Products, including Top-Up premiums, is five years.
Q229.
What is one of the liquidity features that add value to life policies, allowing policyholders to withdraw a portion of their funds?

a.

Premium allocation

b.

Policy surrender

c.

Partial withdrawals

d.

Maturity benefits

Discuss
Answer: (c).Partial withdrawals Explanation:Partial withdrawals are one of the liquidity features that add value to life policies, allowing policyholders to withdraw a portion of their funds while keeping the policy in force.
Q230.
Why is the imposition of a lock-in period relevant for top-up premiums in Unit Linked Policies?

a.

To encourage policy surrender

b.

To discourage policyholders from making additional contributions

c.

To regulate the flow of top-ups and maintain financial underwriting norms

d.

To increase the earning capacity of policyholders

Discuss
Answer: (c).To regulate the flow of top-ups and maintain financial underwriting norms Explanation:The imposition of a lock-in period for top-up premiums in Unit Linked Policies is relevant to regulate the flow of top-ups and maintain financial underwriting norms.
Page 23 of 32