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.

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Regulations on Conduct of Business MCQs | Page 4 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q31.
What is the ultimate aim of microfinance?

a.

Generating profits for financial institutions

b.

Providing high-interest loans to low-income individuals

c.

Reducing poverty and eliminating it completely

d.

Focusing on luxury financial products

Discuss
Answer: (c).Reducing poverty and eliminating it completely Explanation:The ultimate aim of microfinance is to reduce poverty and eventually eliminate it completely.
Q32.
Who is credited with conceiving the idea of forming a microcredit institution during a great famine in Bangladesh?

a.

Bill Clinton

b.

Muhammad Yunus

c.

Hillary Rodham Clinton

d.

Grameen Bank

Discuss
Answer: (b).Muhammad Yunus Explanation:During a great famine in Bangladesh in 1974, Prof. Muhammad Yunus conceived the idea of forming a bank for exclusive micro-credit to the poor, leading to the establishment of Grameen Bank in 1983.
Q33.
Which of the following is the most well-known international example of a microcredit institution?

a.

ASA

b.

Alternativa Solidaria

c.

Grameen Bank

d.

United Nations Commissioner for Refugees

Discuss
Answer: (c).Grameen Bank Explanation:Grameen Bank of Bangladesh as the most well-known international example of a microcredit institution.
Q34.
When did the concept of micro-financing receive global appreciation?

a.

1960s

b.

1970s

c.

1980s

d.

1990s and the beginning of the present century

Discuss
Answer: (d).1990s and the beginning of the present century Explanation:The phenomenon of micro-financing received global appreciation by the end of the 1990s and the beginning of the present century.
Q35.
What was recommended by the Consultative Group regarding the status of micro-insurance in India?

a.

Micro-insurance should remain an independent entity.

b.

Micro-insurance should be excluded from the insurance spectrum.

c.

Micro-insurance should be a part of the broader spectrum of insurance in the country.

d.

Micro-insurance should replace traditional insurance schemes.

Discuss
Answer: (c).Micro-insurance should be a part of the broader spectrum of insurance in the country. Explanation:The Consultative Group recommended that micro-insurance should be a part of the broader spectrum of insurance in India.
Q36.
What suggestion was made regarding the distribution channel for micro-insurance?

a.

Distribution should only be through traditional insurance agents.

b.

No specific distribution channel was recommended.

c.

A proper channel of distribution should be established, serving a different client base.

d.

Distribution should be restricted to urban areas.

Discuss
Answer: (c).A proper channel of distribution should be established, serving a different client base. Explanation:A proper channel of distribution should be established for micro-insurance, serving a client base different from regular clients.
Q37.
How were micro-insurance agents proposed to be compensated for their additional services?

a.

Through government subsidies

b.

Through commission from the insured individuals

c.

Without any compensation

d.

Through direct payment by the insured individuals

Discuss
Answer: (b).Through commission from the insured individuals Explanation:Micro-insurance agents could be compensated for their additional services through commission as laid down by the authority.
Q38.
What language recommendation was made for policy literature and documents in micro-insurance?

a.

Only in English

b.

Only in Hindi

c.

In regional languages

d.

Both in English and Hindi

Discuss
Answer: (c).In regional languages Explanation:Policy literature and documents in micro-insurance should be made available in regional languages.
Q39.
What are the three types of entities allowed to act as micro-insurance agents according to the Micro-Insurance Regulations?

a.

Insurance companies, banks, and corporate agents

b.

NGOs, SHGs, and MFIs

c.

Conventional insurance agents, brokers, and individual agents

d.

Government agencies, cooperative societies, and credit unions

Discuss
Answer: (b).NGOs, SHGs, and MFIs Explanation:Non-Governmental Organisations (NGOs), Self-Help Groups (SHGs), and Micro Finance Institutions (MFIs) are allowed to act as micro-insurance agents.
Q40.
What requirement needs to be fulfilled before a micro-insurance agent enters into an agreement with an insurer?

a.

Approval from the IRDA

b.

Approval from the head office of the insurer

c.

Approval from the micro-insurance regulatory body

d.

No prior approval is required

Discuss
Answer: (b).Approval from the head office of the insurer Explanation:A micro-insurance agent should be appointed by an insurer through a deed of agreement, and prior approval from the head office of the insurer is necessary before entering into such an agreement.
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