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.
What is the percentage of rural sector obligations for general insurers in the financial year 2008-09?

a.

Five percent

b.

Six percent

c.

Seven percent

d.

Eight percent

Discuss
Answer: (c).Seven percent Explanation:In the financial year 2008-09, general insurers are obligated to fulfill seven percent of the total gross premium income written direct in that year for the rural sector.
Q42.
What is the basis for calculating compliance with rural sector obligations for both general and life companies?

a.

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 rural sector obligations for both general and life companies is based on the sale of products conforming to micro-insurance regulations.
Q43.
How are social sector obligations determined for general insurers in the financial year 2008-09?

a.

Fixed number of lives

b.

Average number of lives covered in 2002-03 to 2004-05

c.

Ten percent increase over the previous year

d.

Proportional to the insurer's total premium income

Discuss
Answer: (b).Average number of lives covered in 2002-03 to 2004-05 Explanation:For the financial year 2008-09, social sector obligations for general insurers are determined based on the average number of lives covered in the years 2002-03 to 2004-05.
Q44.
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.
Q45.
In which cases are there relaxations to the provisions of Section 64VB of the Insurance Act?

a.

Only for motor vehicle insurance policies

b.

Only for marine cargo insurance policies

c.

In cases of certain categories of insurance specified in Rule 59 of Insurance Rules

d.

In all cases of insurance policies

Discuss
Answer: (c).In cases of certain categories of insurance specified in Rule 59 of Insurance Rules Explanation:Relaxations to the provisions of Section 64VB of the Insurance Act are applicable in cases of certain categories of insurance specified in Rule 59 of Insurance Rules. These categories include policies issued to Government and Semi-Government Bodies, Sickness Insurance, Group Personal Accident Insurance, among others.
Q46.
What is the purpose of the Memorandum of Exchange Control Regulations relating to General Insurance in India?

a.

To regulate the export of insurance policies

b.

To facilitate the import of insurance policies

c.

To govern general insurance business written in India under the Foreign Exchange Management Act

d.

To regulate the sale of insurance policies to foreign entities

Discuss
Answer: (c).To govern general insurance business written in India under the Foreign Exchange Management Act Explanation:The purpose of the Memorandum of Exchange Control Regulations relating to General Insurance in India is to govern general insurance business written in India under the Foreign Exchange Management Act. These regulations provide guidelines for exchange control regulations applicable to general insurance transactions.
Q47.
What document should insurers insist on when issuing policies expressed in foreign currency against premium payable in foreign currency?

a.

Insurance certificate

b.

Bank encashment certificate

c.

Foreign exchange certificate

d.

Premium receipt

Discuss
Answer: (b).Bank encashment certificate Explanation:Insurers should insist on submission of a bank encashment certificate when issuing policies expressed in foreign currency against premium payable in foreign currency. This certificate serves as proof that the premium has been received by foreign exchange remittance through banking channels or in rupees derived by sale of foreign exchange to an authorized dealer.
Q48.
What is the requirement for persons, firms, and companies resident in India regarding taking insurance cover with insurance companies in foreign countries?

a.

Prior permission from the Reserve Bank of India

b.

Approval from the General Insurance Business (Nationalisation) Act, 1972

c.

Permission from the Ministry of Finance

d.

Consent from the Insurance Regulatory and Development Authority (IRDA)

Discuss
Answer: (a).Prior permission from the Reserve Bank of India Explanation:Persons, firms, and companies resident in India are not permitted to take insurance cover with insurance companies in foreign countries without the prior permission of the Reserve Bank of India. Additionally, permission from the Government of India under the General Insurance Business (Nationalisation) Act, 1972, is also required in such cases.
Q49.
How are payments of claims to individuals in Nepal and Bhutan against marine or non-marine policies typically handled?

a.

Payments are made in foreign currency without any restrictions

b.

Payments are made in Indian rupees without any restrictions

c.

Payments are made in Indian rupees, but prior approval of the Reserve Bank is required for payments in foreign currency

d.

Payments are made in foreign currency, but prior approval of the Reserve Bank is required for payments in Indian rupees

Discuss
Answer: (b).Payments are made in Indian rupees without any restrictions Explanation:Payments of claims to individuals in Nepal and Bhutan against marine or non-marine policies are typically made in Indian rupees without any restrictions. Residents of Nepal and Bhutan, as well as offices and branches of firms, companies, or organizations in these countries, are treated as residents in India for purposes of transactions in Indian rupees.
Q50.
In what currency are marine insurance policies on coastal shipments typically issued?

a.

Indian rupees only

b.

Foreign currency only

c.

Both Indian rupees and foreign currency

d.

Euros only

Discuss
Answer: (a).Indian rupees only Explanation:Marine insurance policies on coastal shipments are typically issued only in Indian rupees. This ensures consistency and compliance with regulatory requirements for domestic marine insurance transactions.
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