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 24 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q231.
What conditions must be met for insurers to remit claims under policies issued in foreign currency?

a.

The claim must be admitted by the competent authority of the insurance company

b.

The policy must be issued in foreign currency with specific approval of the Reserve Bank

c.

Claims on account of reinsurance must be lodged with the reinsurers

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:For insurers to remit claims under policies issued in foreign currency, several conditions must be met: (i) The claim must be admitted by the competent authority of the insurance company. (ii)The policy must be issued in foreign currency with specific approval of the Reserve Bank. (iii) Claims on account of reinsurance must be lodged with the reinsurers. These conditions ensure compliance with regulatory requirements and proper claims settlement procedures.
Q232.
What is the requirement for settlement of claims under policies issued in foreign currency for resident beneficiaries?

a.

Payment must be made in foreign currency to resident beneficiaries

b.

Payment may be made in Rupee equivalent of foreign currency due to resident beneficiaries

c.

Payment must be made in Rupee equivalent of foreign currency due to non-resident beneficiaries

d.

Payment may be made in foreign currency to non-resident beneficiaries

Discuss
Answer: (b).Payment may be made in Rupee equivalent of foreign currency due to resident beneficiaries Explanation:For settlement of claims under policies issued in foreign currency for resident beneficiaries, payment may be made in Rupee equivalent of foreign currency due to resident beneficiaries. This ensures compliance with currency regulations and facilitates seamless claims settlement while protecting the interests of resident beneficiaries.
Q233.
What constitutes a suspicious transaction in insurance?

a.

Transactions involving large sums of money

b.

Transactions that are disclosed promptly by customers

c.

Transactions that exhibit unusual behavior or raise concerns about money laundering

d.

Transactions involving routine policy changes

Discuss
Answer: (c).Transactions that exhibit unusual behavior or raise concerns about money laundering Explanation:A suspicious transaction in insurance constitutes transactions that exhibit unusual behavior or raise concerns about money laundering.
Q234.
Which of the following is NOT listed as an example of a suspicious transaction in insurance?

a.

Early termination of a product, especially at a loss

b.

Routine requests for change of address

c.

A transfer of the benefit of a product to an apparently unrelated third party without valid considerations

d.

Attempts to use a third party cheque to make a proposed purchase of a policy

Discuss
Answer: (b).Routine requests for change of address Explanation:Routine requests for change of address are not listed as an example of a suspicious transaction in insurance.
Q235.
What action should be taken if there is a suspicion of a transaction being involved in illegal activity?

a.

The transaction should be continued as normal

b.

The transaction should be stopped immediately, and action should be initiated to apprehend the entities involved

c.

The transaction should be ignored unless further evidence is found

d.

The transaction should be reported to the authorities after a thorough investigation

Discuss
Answer: (b).The transaction should be stopped immediately, and action should be initiated to apprehend the entities involved Explanation:If there is a suspicion of a transaction being involved in illegal activity, the transaction should be stopped immediately, and action should be initiated to apprehend the entities involved.
Q236.
What is the purpose of analysing suspicious transactions and taking immediate action?

a.

To ensure the transaction is completed without interruption

b.

To trace the source of the transaction and apprehend the entities involved

c.

To gather evidence for future investigations

d.

To delay reporting to the authorities until further evidence is found

Discuss
Answer: (b).To trace the source of the transaction and apprehend the entities involved Explanation:The purpose of analysing suspicious transactions and taking immediate action is to trace the source of the transaction and apprehend the entities involved.
Q237.
What is the primary objective of KYC processes?

a.

To increase the paperwork for customers

b.

To ensure the financial institution's operations are clean and to serve customers better

c.

To impose unnecessary burdens on customers

d.

To collect excessive personal information about customers

Discuss
Answer: (b).To ensure the financial institution's operations are clean and to serve customers better Explanation:The primary objective of KYC processes, is to ensure that the financial institution's operations are clean so as to help serve customers better.
Q238.
Which of the following is NOT a purpose of collecting detailed customer information?

a.

Satisfying legal requirements for better customer relationship

b.

Monitoring the policy for possible abuse or illegal use

c.

To provide required services to the customers

d.

Identifying potential fraudulent activities within the company

Discuss
Answer: (d).Identifying potential fraudulent activities within the company Explanation:Identifying potential fraudulent activities within the company is not a purpose of collecting detailed customer information.
Q239.
What are the typical documents accepted as photo identity proof during the KYC process?

a.

Passport, driver's license, PAN card, voter identity card

b.

Passport, utility bills, bank statements, rental agreements

c.

Birth certificate, school ID, credit card statement, library card

d.

Social security card, health insurance card, employment contract, property deed

Discuss
Answer: (a).Passport, driver's license, PAN card, voter identity card Explanation:The typical documents accepted as photo identity proof during the KYC process include passport, driver's license, PAN card, voter identity card, among others.
Q240.
What can KYC deficiencies lead to?

a.

Improved customer relationship

b.

Lower legal risks for the financial institution

c.

Various business and legal risks

d.

Increased customer satisfaction

Discuss
Answer: (c).Various business and legal risks Explanation:KYC deficiencies can lead to various business and legal risks.
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