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 26 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q251.
Under what circumstances may claims arising from marine insurance policies covering merchanting trade financed through India be settled by insurers from their foreign currency balances?

a.

When payment for the goods has been received by the Indian intermediary from the buyer

b.

When ownership of the goods vests with the overseas supplier

c.

When the goods are financed through India

d.

When the claim is proposed to be settled in favor of the overseas buyer

Discuss
Answer: (b).When ownership of the goods vests with the overseas supplier Explanation:Claims arising from marine insurance policies covering merchanting trade financed through India may be settled by insurers from their foreign currency balances only when ownership of the goods vests with the overseas supplier. This condition ensures that claims settlement aligns with ownership rights and facilitates smooth transactions in merchanting trade.
Q252.
In which currency may insurance cover on risks inside India be issued for assets owned by residents of India?

a.

Foreign currency

b.

Indian rupees

c.

Euro

d.

US dollars

Discuss
Answer: (b).Indian rupees Explanation:Insurance cover on risks inside India for assets owned by residents of India may be issued only in Indian rupees. This regulation ensures compliance with currency regulations and aligns with the domestic currency framework for insurance transactions.
Q253.
Under what circumstances may non-marine risks in respect of assets outside India owned by residents of India be covered in foreign currency?

a.

When premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin

b.

When the Reserve Bank grants specific approval for foreign currency policies

c.

When the assets are held outside India by Indian nationals

d.

When the policyholder has returned to India after a minimum continuous stay abroad for at least one year

Discuss
Answer: (a).When premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin Explanation:Non-marine risks in respect of assets outside India owned by residents of India may be covered in foreign currency if premiums are paid in foreign currency from eligible foreign currency assets held by Indian nationals/persons of Indian origin. This provision ensures that policyholders have access to foreign currency coverage for their assets held abroad under specific conditions outlined by regulatory authorities.
Q254.
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.
Q255.
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.
Q256.
Under what circumstances can insurance cover on baggage or valuables in transit between India and other countries be issued in rupees?

a.

If the owner of the baggage or valuables is an Indian national or is normally resident in India

b.

If the premiums are paid in foreign currency

c.

If the policy holder is a person normally resident outside India

d.

If the premiums are collected in rupees derived by surrender of foreign currency

Discuss
Answer: (a).If the owner of the baggage or valuables is an Indian national or is normally resident in India Explanation:Insurance cover on baggage or valuables in transit between India and other countries can be issued in rupees if the owner of the baggage or valuables is an Indian national or is normally resident in India. This provision ensures that individuals with connections to India can obtain insurance coverage for their belongings during transit under specific conditions.
Q257.
What is required for premiums on policies covering baggage or valuables in transit to be collected in rupees?

a.

The policy holder must be a person normally resident outside India

b.

The premiums must be paid in foreign currency

c.

The premiums must be collected in rupees derived by surrender of foreign currency

d.

The premiums must be collected in foreign currency

Discuss
Answer: (c).The premiums must be collected in rupees derived by surrender of foreign currency Explanation:Premiums on policies covering baggage or valuables in transit may be collected in rupees only if they are derived by surrender of foreign currency to an authorised dealer in foreign exchange or authorised money-changer. This provision allows for the collection of premiums in rupees under specific conditions, ensuring compliance with currency regulations.
Q258.
In what currency can claims on policies covering baggage or valuables in transit be paid in India?

a.

Claims can only be paid in foreign currency

b.

Claims can only be paid in rupees

c.

Claims can be paid in foreign currency or rupees, depending on the preference of the policy holder

d.

Claims can be paid in rupees only if the policy holder is a person normally resident outside India

Discuss
Answer: (b).Claims can only be paid in rupees Explanation:Claims on policies covering baggage or valuables in transit may be paid only in rupees in India, except where the policy holder is a person normally resident outside India and premiums against the policy had been collected either in foreign currency or in rupees derived by surrender of foreign currency. This provision ensures uniformity in claims settlement procedures within India.
Q259.
Under what circumstances can personal accident policies be issued in foreign currency?

a.

When the policy holder is a person normally resident in India

b.

When the premiums are paid in rupees derived by surrender of foreign currency

c.

When the policy holder is an Indian national

d.

When the premiums are paid in foreign currency or in rupees derived by surrender of foreign currency

Discuss
Answer: (d).When the premiums are paid in foreign currency or in rupees derived by surrender of foreign currency Explanation:Personal accident policies may be issued in foreign currency if the premiums thereon are paid either in foreign currency or in rupees derived by surrender of foreign currency to an authorised dealer or authorised money-changer. This provision allows for flexibility in currency options for personal accident insurance, subject to regulatory requirements.
Q260.
Under what circumstances may Indian companies executing construction and turnkey contracts in foreign countries obtain personal accident cover from Indian Insurers?

a.

If the premiums are paid in foreign currency

b.

If the workmen and technical staff are engaged in overseas contracts

c.

If the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts

d.

If the policies provide for settlement of claims in foreign currency

Discuss
Answer: (c).If the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts Explanation:Indian companies executing construction and turnkey contracts in foreign countries may obtain personal accident cover from Indian Insurers if the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts. This arrangement allows for insurance coverage for workmen and technical staff engaged in overseas contracts, with premiums paid in compliance with foreign currency regulations.
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