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 29 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q281.
What is the purpose of the Financial Action Task Force (FATF)?

a.

Development of national and international financial regulations

b.

Promotion of money laundering techniques

c.

Development and promotion of policies to combat money laundering and terrorist financing

d.

Implementation of financial sanctions against certain countries

Discuss
Answer: (c).Development and promotion of policies to combat money laundering and terrorist financing Explanation:The purpose of the Financial Action Task Force (FATF) is the development and promotion of national and international policies to combat money laundering and terrorist financing.
Q282.
What is the primary aim of the KYC process?

a.

To maximize profits for financial institutions

b.

To increase bureaucracy in financial transactions

c.

To weed out bad customers and protect good ones

d.

To deny insurance services to the public

Discuss
Answer: (c).To weed out bad customers and protect good ones Explanation:The primary aim of the KYC (Know Your Customer) process is to weed out bad customers and protect good ones.
Q283.
Who bears the responsibility for implementing a robust program against money laundering and terrorist financing in insurance companies?

a.

Customers

b.

Government agencies

c.

Regulatory authorities

d.

Insurance companies

Discuss
Answer: (d).Insurance companies Explanation:AML/CFT (Anti-Money Laundering/Combating the Financing of Terrorism) guidelines place the responsibility of a robust program on insurance companies for guarding against insurance products being used to launder unlawfully derived funds or finance terrorist acts.
Q284.
How long are records of transactions reported to the Financial Intelligence Unit (FIU) required to be retained?

a.

1 year

b.

5 years

c.

10 years

d.

20 years

Discuss
Answer: (c).10 years Explanation:Records of transactions reported to FIU must be retained for 10 years beginning from the date of occurrence of the transaction.
Q285.
What is the general trend of insurance premium with respect to risk?

a.

Increases with decrease in risk

b.

Decreases with increase in risk

c.

Increases with increase in risk

d.

Remains constant regardless of risk

Discuss
Answer: (c).Increases with increase in risk Explanation:The insurance premium generally increases with the increase in risk.
Q286.
What do the IRDA (Manner of receipt of premium) Regulations prescribe?

a.

Procedures for claim settlement

b.

Modes of payment of premium

c.

Guidelines for underwriting

d.

Requirements for policy cancellation

Discuss
Answer: (b).Modes of payment of premium Explanation:The IRDA (Manner of receipt of premium) Regulations prescribe the alternative modes of payment of premium.
Q287.
When does the insurer assume risk according to Section 64VB of the Insurance Act 1938?

a.

After the proposal is submitted

b.

After the policy is issued

c.

Only after the premium is received

d.

Immediately upon acceptance of the proposal

Discuss
Answer: (c).Only after the premium is received Explanation:As per Section 64VB of the Insurance Act 1938, the insurer shall be on risk only after the receipt of the premium by the insurer except in cases where premium has been paid in cash.
Q288.
What happens to a general insurance policy if the remittance made by the proposer or policyholder is not realized by the insurer?

a.

The policy remains valid

b.

The premium is refunded

c.

The policy is treated as void ab initio

d.

The insurer assumes the risk

Discuss
Answer: (c).The policy is treated as void ab initio Explanation:In the case of a policy of general insurance, where the remittance made by the proposer or the policyholder is not realized by the insurer, the policy shall be treated as void ab initio i.e. as if no policy existed.
Q289.
What determines the continuance of risk in a life insurance policy?

a.

Insurance company's decision

b.

Terms and conditions of the policy

c.

Market conditions

d.

Regulatory authority's guidelines

Discuss
Answer: (b).Terms and conditions of the policy Explanation:In the case of a life insurance policy, the continuance of the risk or otherwise shall depend on the terms and conditions of the policy entered into.
Q290.
Under what circumstances do insurers not have 'non-receipt of premium or non-realization of cheque' as a defence against payment of compensation to the third party?

a.

In case of life insurance policies

b.

In case of marine insurance policies

c.

Under the Motor Vehicles Act

d.

Under the Insurance Act 1938

Discuss
Answer: (c).Under the Motor Vehicles Act Explanation:Under the Motor Vehicles Act, insurers do not have ‘non-receipt of premium or non-realization of cheque’ as a defence against payment of compensation to the third party.
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