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 5 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q41.
How many insurers can a micro-insurance agent work for in life insurance and general insurance business, respectively?

a.

One insurer in life insurance and one insurer in general insurance

b.

Two insurers in life insurance and two insurers in general insurance

c.

Only one insurer in either life insurance or general insurance

d.

No restrictions on the number of insurers

Discuss
Answer: (c).Only one insurer in either life insurance or general insurance Explanation:A micro-insurance agent shall not work for more than one insurer carrying on life insurance business and one insurer carrying on general insurance business.
Q42.
What functions may be performed by a micro-insurance agent as specified in the deed of agreement?

a.

Investment advice and financial planning

b.

Collection of proposal form, collection of self-declaration of health, distribution of policy documents, assistance in settlement of claims, etc.

c.

Actuarial calculations and risk assessment

d.

Market research and product development

Discuss
Answer: (b).Collection of proposal form, collection of self-declaration of health, distribution of policy documents, assistance in settlement of claims, etc. Explanation:As per the regulations, the micro-insurance agent's deed of agreement may specifically authorize functions such as collecting proposal forms, self-declarations of health, distributing policy documents, and assisting in the settlement of claims.
Q43.
What requirement must be met by a micro-insurance agent when employing specified persons?

a.

Approval from the IRDA

b.

Approval from the head office of the insurer

c.

Approval from the local government

d.

No approval is required

Discuss
Answer: (b).Approval from the head office of the insurer Explanation:The regulations state that a micro-insurance agent, when employing specified persons, needs to obtain approval from the head office of the insurer.
Q44.
According to the regulations, what is the duration of training that insurers must provide to micro-insurance agents and their specified persons?

a.

Ten hours

b.

Twenty hours

c.

Twenty-five hours

d.

Thirty hours

Discuss
Answer: (c).Twenty-five hours Explanation:The regulations specify that insurers must provide at least twenty-five hours of training, conducted in the local vernacular language, to micro-insurance agents and their specified persons.
Q45.
How is the remuneration for a micro-insurance agent determined for single premium life insurance policies?

a.

15% of the single premium

b.

20% of the single premium

c.

10% of the single premium

d.

25% of the single premium

Discuss
Answer: (c).10% of the single premium Explanation:The regulations outline that for single premium life insurance policies, a micro-insurance agent may be paid remuneration, and it should not exceed 10% of the single premium.
Q46.
What information should be included in the policy documents for group micro-insurance contracts, according to the regulations?

a.

Only general terms and conditions

b.

Schedule showing details of individuals covered and a separate certificate for each individual

c.

Premium payment instructions

d.

Only policyholder's name and contact details

Discuss
Answer: (b).Schedule showing details of individuals covered and a separate certificate for each individual Explanation:The regulations stipulate that in the case of group micro-insurance contracts, policy documents must contain a schedule showing details of individuals covered under the group, and a separate certificate with necessary details should be issued to each individual covered under the group insurance.
Q47.
What provision do the regulations make for a tie-up between a life insurer and a non-life insurer in offering micro-insurance products?

a.

No tie-ups allowed between life and non-life insurers

b.

Life insurers can only offer life micro-insurance products

c.

Tie-up is allowed, and in case of claims, the life insurer settles both life and non-life claims

d.

Non-life insurers can only offer general insurance products

Discuss
Answer: (c).Tie-up is allowed, and in case of claims, the life insurer settles both life and non-life claims Explanation:The regulations allow a tie-up between a life insurer and a non-life insurer, enabling a life insurer to offer both life and general micro-insurance products. In the event of claims, the life insurer forwards non-life claims to the non-life insurer for settlement.
Q48.
How often can group insurance products be renewable?

a.

Every two years

b.

Monthly

c.

Yearly

d.

Biennially

Discuss
Answer: (c).Yearly Explanation:Group insurance products may be renewable on a yearly basis.
Q49.
What is the minimum number of members required for a group to be eligible for group insurance?

a.

10 members

b.

15 members

c.

20 members

d.

25 members

Discuss
Answer: (c).20 members Explanation:The minimum number of members comprising a group eligible for group insurance should be at least 20.
Q50.
What does ULIP stand for and what does it combine?

a.

Uniform Life Investment Plan, combining investment and retirement benefits

b.

Unit Linked Insurance Plan, combining insurance protection and investment

c.

Universal Liability and Income Protection, combining income tax benefits and investment

d.

Unitary Life Income Program, combining insurance and health coverage

Discuss
Answer: (b).Unit Linked Insurance Plan, combining insurance protection and investment Explanation:ULIP stands for Unit Linked Insurance Plan, which combines both insurance protection and investment features.
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