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 6 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q51.
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.
Q52.
What are the record-keeping requirements for customer identification data according to AML guidelines?

a.

Retained for 5 years after the relationship with the customer has ended

b.

Retained for 7 years after the relationship with the customer has ended

c.

Retained for 10 years after the relationship with the customer has ended

d.

Retained indefinitely

Discuss
Answer: (c).Retained for 10 years after the relationship with the customer has ended Explanation:According to AML guidelines, records of customer identification data must be retained by insurance companies for a period of 10 years after the relationship with the customer has ended. This ensures that there is a comprehensive record of customer interactions and transactions for regulatory compliance and audit purposes.
Q53.
Why is it important for insurance companies to have adequate screening procedures when hiring employees and agents?

a.

To increase paperwork

b.

To discourage genuine employees

c.

To prevent misuse of the insurance sector by money launderers

d.

To limit the number of employees and agents

Discuss
Answer: (c).To prevent misuse of the insurance sector by money launderers Explanation:It is important for insurance companies to have adequate screening procedures when hiring employees and agents to prevent misuse of the insurance sector by money launderers. Proper screening helps ensure that individuals with questionable backgrounds or intentions are not able to infiltrate the system and exploit it for illicit activities.
Q54.
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.
Q55.
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.
Q56.
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.
Q57.
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.
Q58.
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.
Q59.
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.
Q60.
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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