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.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Regulations on Conduct of Business. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Regulations on Conduct of Business knowledge to the test? Let's get started with our carefully curated MCQs!

Regulations on Conduct of Business MCQs | Page 7 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q61.
What option does a policyholder have regarding investment in ULIP funds?

a.

They can only invest in a single fund throughout the policy term

b.

They cannot switch or redirect their investments once made

c.

They have the option to invest in more than one fund (redirection) and can switch between funds

d.

They can only invest in equity funds

Discuss
Answer: (c).They have the option to invest in more than one fund (redirection) and can switch between funds Explanation:A ULIP policyholder has the option to invest in more than one fund (redirection) and can switch or change existing investments from one fund to another.
Q62.
What does the term "redirection" refer to in the context of ULIPs?

a.

Shifting the fund corpus to a different insurer

b.

Investing in a conservative fund

c.

The policyholder's option to invest in more than one fund

d.

The policyholder's choice to switch between debt and equity funds

Discuss
Answer: (c).The policyholder's option to invest in more than one fund Explanation:"Redirection" in the context of ULIPs refers to the policyholder's option to invest in more than one fund.
Q63.
What types of funds are typically offered under ULIP schemes by insurance companies?

a.

Only equity funds

b.

Conservative fund, balance fund, and aggressive fund

c.

Mutual funds and fixed deposits

d.

Debt securities and government bonds

Discuss
Answer: (b).Conservative fund, balance fund, and aggressive fund Explanation:Insurance companies typically offer conservative fund, balance fund, and aggressive fund under ULIP schemes.
Q64.
Which regulatory authority governs ULIPs?

a.

Securities and Exchange Board of India (SEBI)

b.

Reserve Bank of India (RBI)

c.

Insurance Regulatory and Development Authority (IRDA)

d.

Ministry of Finance

Discuss
Answer: (c).Insurance Regulatory and Development Authority (IRDA) Explanation:ULIP is an insurance product and is governed by the Insurance Regulatory and Development Authority (IRDA), not by SEBI.
Q65.
What is the revised lock-in period for all Unit Linked Products according to the IRDA guidelines effective from September 2010?

a.

Three years

b.

Four years

c.

Five years

d.

Six years

Discuss
Answer: (c).Five years Explanation:The three-year lock-in period for all Unit Linked Products was increased to a period of five years, including top-up premiums.
Q66.
How are overall charges distributed in ULIPs during the lock-in period, according to the IRDA guidelines?

a.

Front-loaded, with higher charges in the initial years

b.

Back-loaded, with higher charges in the later years

c.

Distributed evenly during the lock-in period

d.

Charges vary based on the market conditions

Discuss
Answer: (c).Distributed evenly during the lock-in period Explanation:According to the guidelines, insurers shall distribute the overall charges in ULIPs in an even fashion during the lock-in period.
Q67.
What is the minimum mortality cover requirement for unit-linked products, as per the IRDA guidelines?

a.

150 percent of single premium

b.

125 percent of single premium for age below 45 and 110 percent for age 45 and above

c.

10 times the annualized premiums or 7 times for age 45 and above

d.

105 percent of total premiums paid

Discuss
Answer: (b).125 percent of single premium for age below 45 and 110 percent for age 45 and above Explanation:The minimum mortality cover for unit-linked products should be 125 percent of single premium for age below 45 and 110 percent for age 45 and above.
Q68.
What is the minimum premium paying term for all limited premium unit-linked insurance products, other than single premium products, as per the guidelines?

a.

3 years

b.

5 years

c.

7 years

d.

10 years

Discuss
Answer: (b).5 years Explanation:According to the IRDA guidelines, all limited premium unit-linked insurance products, other than single premium products, shall have a premium paying term of at least 5 years.
Q69.
How are additional payments treated in regular premium / limited premium ULIPs for the purpose of insurance cover?

a.

They are treated as single premium

b.

They do not affect the insurance cover

c.

They increase the insurance cover proportionally

d.

They are treated as an investment and not considered for insurance cover

Discuss
Answer: (a).They are treated as single premium Explanation:According to the guidelines, any additional payments in regular premium / limited premium ULIPs shall be treated as single premium for the purpose of insurance cover.
Q70.
What is the minimum annual health cover requirement for regular premium contracts for individuals aged below 45 years, according to IRDA guidelines?

a.

2 times the annualized premiums or Rs. 50,000 per annum, whichever is higher

b.

5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher

c.

3 times the annualized premiums or Rs. 75,000 per annum, whichever is higher

d.

105 percent of the total premiums paid

Discuss
Answer: (b).5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher Explanation:The minimum annual health cover for regular premium contracts for individuals aged below 45 years should be 5 times the annualized premiums or Rs. 100,000 per annum, whichever is higher.
Page 7 of 32