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 4 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q31.
Is re-insurance premium included while calculating the obligations of insurers for the rural and social sectors?

a.

Yes

b.

No

c.

May be Yes or No

d.

Can't Say

Discuss
Answer: (b).No Explanation:Re-insurance premium is not included while calculating the obligations of insurers for the rural and social sectors.
Q32.
Who has the authority to prescribe or revise the obligations specified in these regulations?

a.

Insurance companies

b.

Ministry of Finance

c.

Insurance Regulatory and Development Authority

d.

National Rural Development Authority

Discuss
Answer: (c).Insurance Regulatory and Development Authority Explanation:The Insurance Regulatory and Development Authority (IRDA) has the authority to prescribe or revise the obligations specified in these regulations.
Q33.
How is compliance with social sector obligations determined for both general and life companies?

a.

Percentage of total assets

b.

Sale of products conforming to micro-insurance regulations

c.

Number of policies issued

d.

Premium income

Discuss
Answer: (b).Sale of products conforming to micro-insurance regulations Explanation:Compliance with social sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q34.
Where should insurers submit returns regarding rural and social sector obligations?

a.

To the Ministry of Finance

b.

To the National Rural Development Authority

c.

As part of the financial returns under IRDA's regulations

d.

To the Insurance Regulatory and Development Authority (IRDA) directly

Discuss
Answer: (c).As part of the financial returns under IRDA's regulations Explanation:Every insurer should submit returns regarding rural and social sector obligations as part of the financial returns under the Insurance Regulatory and Development Authority (IRDA) (Preparation of Financial Statements and Auditors Report of Insurance Companies) Regulations, 2002.
Q35.
What role does micro-insurance play in the growing Indian insurance industry?

a.

Dominant role

b.

Limited role

c.

Negligible role

d.

No role

Discuss
Answer: (c).Negligible role Explanation:When it comes to micro-insurance, the picture is a mere dot on the canvas, suggesting that micro-insurance plays a negligible role in the Indian insurance industry.
Q36.
What is the primary goal of micro-insurance?

a.

Maximizing profits for insurance companies

b.

Providing insurance coverage to affluent individuals

c.

Offering insurance products exclusively for urban areas

d.

Providing insurance cover to low-income individuals at affordable rates

Discuss
Answer: (d).Providing insurance cover to low-income individuals at affordable rates Explanation:The primary goal of micro-insurance is to provide insurance cover to poor and low-income people at affordable rates.
Q37.
In the context of micro-insurance, what is the role of micro finance institutions (MFIs)?

a.

They provide investment advice to policyholders.

b.

They act as intermediaries in selling insurance products.

c.

They solely focus on financial services and not insurance.

d.

They assess risks and determine premium rates.

Discuss
Answer: (b).They act as intermediaries in selling insurance products. Explanation:Many insurance companies tie up with micro finance institutions (MFIs) in rural areas to promote micro-insurance products, indicating that MFIs play a role as intermediaries in selling these insurance products.
Q38.
What are some scenarios where micro-insurance can be beneficial?

a.

Luxury item protection

b.

Loss of income due to job change

c.

Death of the bread earner, funeral expenses, and asset risks

d.

Home decoration coverage

Discuss
Answer: (c).Death of the bread earner, funeral expenses, and asset risks Explanation:There are scenarios where micro-insurance can be beneficial, including death of the bread earner, funeral expenses, loss of small-scale assets due to perils, livestock damage, and crop damage.
Q39.
What role does the insurance company play in micro-insurance?

a.

Only collects premiums from members

b.

Acts as an intermediary and maintains the common pool

c.

Determines premium rates based on individual risks

d.

Has no involvement in pooling risks among members

Discuss
Answer: (b).Acts as an intermediary and maintains the common pool Explanation:Insurance company acts as an intermediary, bringing together members exposed to the same risk, and maintains a common pool from which compensation is paid when any member suffers a loss.
Q40.
What are some risks covered under micro-insurance?

a.

Luxury item loss

b.

Job-related accidents

c.

Risks to assets, illness, injury, and death

d.

Financial market fluctuations

Discuss
Answer: (c).Risks to assets, illness, injury, and death Explanation:Risks covered under micro-insurance include life and health risks (illness, injury, or death) and risks to which assets are exposed.
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