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 31 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q301.
Micro-insurance products need prior approval of the authority under the “File & Use” procedure and every such product shall prominently carry the caption “______________”.

a.

Insurance Product

b.

Micro-Insurance Product

c.

Life Insurance Product

d.

Non-Life Insurance Product

Discuss
Answer: (b).Micro-Insurance Product Explanation:Micro-insurance products require prior approval under the “File & Use” procedure, and each approved product must prominently display the caption "Micro-Insurance Product" to distinguish it within the market.
Q302.
In the case of discontinued linked insurance policies, the policyholder has an option to either _______ the policy within the terms and conditions governing the policy or ________ the entire funds from the underlying ULIP funds with no risk cover.

a.

Revive, withdraw

b.

Terminate, withdraw

c.

Revive, forgo

d.

Terminate, forgo

Discuss
Answer: (a).Revive, withdraw Explanation:Discontinued linked insurance policyholders can choose to revive the policy within its terms or withdraw the entire funds from the underlying ULIP funds, forfeiting the risk cover.
Q303.
In the case of regular premium ULIP policies, most insurance companies allow the policyholders to pay premiums on a _____________ basis.

a.

Daily, weekly, monthly, quarterly

b.

Weekly, monthly, quarterly, semi-annually

c.

Monthly, quarterly, semi-annually, annually

d.

Weekly, monthly, quarterly, semi-annually, annually

Discuss
Answer: (c).Monthly, quarterly, semi-annually, annually Explanation:Policyholders with regular premium ULIP policies typically have the flexibility to pay premiums on a monthly, quarterly, semi-annual, or annual basis, offering convenience and budgeting options.
Q304.
Madhav is going to pay Rs. 50,000 as premium for a ULIP. According to the terms of the ULIP, 60% of the premium will be allocated to the investment chosen by Madhav. Madhav has decided to invest in the balance fund, which has a Net Asset Value of Rs 12. The number of units allocated to Madhav will be ____________.

a.

2000

b.

2500

c.

2750

d.

3000

Discuss
Answer: (b).2500 Explanation:With 60% of Rs 50,000 (Rs 30,000) allocated to the chosen fund with an NAV of Rs 12, Madhav will receive 2500 units (Rs 30,000 / Rs 12) in the balance fund.
Q305.
Who is responsible for providing appropriate training to insurance agents/intermediaries before they are authorized to sell Unit Linked Insurance products?

a.

Insurance Regulatory and Development Authority

b.

Life insurance Companies

c.

Life Insurance Council

d.

Insurance Institute of India

Discuss
Answer: (b).Life insurance Companies Explanation:Life insurance companies are responsible for training agents/intermediaries before they sell Unit Linked Insurance products, ensuring they understand the features and risks associated with these products.
Q306.
For single premium contracts under ULIPs, the minimum sum assured for the age at entry of below 45 years is __________ of the single premium paid.

a.

100%

b.

110%

c.

125%

d.

150%

Discuss
Answer: (c).125% Explanation:For single premium contracts under ULIPs, the minimum sum assured for those entering below 45 years of age is typically 125% of the single premium paid, providing a baseline level of coverage.
Q307.
What is the lock-in period for all Unit Linked Products?

a.

One year

b.

Three years

c.

Five years

d.

Seven years

Discuss
Answer: (c).Five years Explanation:All Unit Linked Products have a lock-in period of five years, during which policyholders cannot make residual payments on lapsed or surrendered policies.
Q308.
Money Laundering refers to ________________.

a.

Conversion of cash into gold

b.

Conversion of asset into cash

c.

Conversion of illegal money into legitimate money

d.

Transfer of cash from one account to another

Discuss
Answer: (c).Conversion of illegal money into legitimate money Explanation:Money laundering involves the process of converting illegally obtained funds into legitimate assets or funds to conceal their origin.
Q309.
From the below options, which is one of the stages of money laundering?

a.

Smurfing

b.

Shell companies

c.

Integration

d.

None of the above

Discuss
Answer: (c).Integration Explanation:Integration is one of the stages of money laundering, where laundered funds are reintroduced into the legitimate economy to disguise their illicit origin.
Q310.
Financial Action Task Force (FATF) was set up in ___________.

a.

Paris

b.

Berlin

c.

London

d.

India

Discuss
Answer: (a).Paris Explanation:The Financial Action Task Force (FATF) was established in Paris to combat money laundering and terrorist financing through international cooperation and setting standards.
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