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 8 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q71.
What is required for premiums on policies covering baggage or valuables in transit to be collected in rupees?

a.

The policy holder must be a person normally resident outside India

b.

The premiums must be paid in foreign currency

c.

The premiums must be collected in rupees derived by surrender of foreign currency

d.

The premiums must be collected in foreign currency

Discuss
Answer: (c).The premiums must be collected in rupees derived by surrender of foreign currency Explanation:Premiums on policies covering baggage or valuables in transit may be collected in rupees only if they are derived by surrender of foreign currency to an authorised dealer in foreign exchange or authorised money-changer. This provision allows for the collection of premiums in rupees under specific conditions, ensuring compliance with currency regulations.
Q72.
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.
Q73.
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.
Q74.
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.
Q75.
In what currency can claims on policies covering baggage or valuables in transit be paid in India?

a.

Claims can only be paid in foreign currency

b.

Claims can only be paid in rupees

c.

Claims can be paid in foreign currency or rupees, depending on the preference of the policy holder

d.

Claims can be paid in rupees only if the policy holder is a person normally resident outside India

Discuss
Answer: (b).Claims can only be paid in rupees Explanation:Claims on policies covering baggage or valuables in transit may be paid only in rupees in India, except where the policy holder is a person normally resident outside India and premiums against the policy had been collected either in foreign currency or in rupees derived by surrender of foreign currency. This provision ensures uniformity in claims settlement procedures within India.
Q76.
Under what circumstances can personal accident policies be issued in foreign currency?

a.

When the policy holder is a person normally resident in India

b.

When the premiums are paid in rupees derived by surrender of foreign currency

c.

When the policy holder is an Indian national

d.

When the premiums are paid in foreign currency or in rupees derived by surrender of foreign currency

Discuss
Answer: (d).When the premiums are paid in foreign currency or in rupees derived by surrender of foreign currency Explanation:Personal accident policies may be issued in foreign currency if the premiums thereon are paid either in foreign currency or in rupees derived by surrender of foreign currency to an authorised dealer or authorised money-changer. This provision allows for flexibility in currency options for personal accident insurance, subject to regulatory requirements.
Q77.
Under what circumstances may Indian companies executing construction and turnkey contracts in foreign countries obtain personal accident cover from Indian Insurers?

a.

If the premiums are paid in foreign currency

b.

If the workmen and technical staff are engaged in overseas contracts

c.

If the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts

d.

If the policies provide for settlement of claims in foreign currency

Discuss
Answer: (c).If the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts Explanation:Indian companies executing construction and turnkey contracts in foreign countries may obtain personal accident cover from Indian Insurers if the premiums are paid by remittances in foreign currency from the foreign currency earnings generated by the contracts. This arrangement allows for insurance coverage for workmen and technical staff engaged in overseas contracts, with premiums paid in compliance with foreign currency regulations.
Q78.
What is the premium collection requirement for Overseas Medical Insurance Schemes for Indian residents traveling abroad for employment?

a.

Premiums must be collected in foreign currency

b.

Premiums must be collected in rupees

c.

Premiums must be collected in rupees for visits other than employment and in foreign currency for employment visits

d.

Premiums must be collected in foreign currency or rupees, depending on the preference of the policy holder

Discuss
Answer: (c).Premiums must be collected in rupees for visits other than employment and in foreign currency for employment visits Explanation:For Overseas Medical Insurance Schemes for Indian residents traveling abroad, premiums may be collected in rupees for visits other than employment and in foreign currency for employment visits. This premium collection requirement ensures compliance with regulatory guidelines and facilitates insurance coverage for different purposes of travel abroad.
Q79.
In what currency may claims arising outside India against policies issued under the Workmen's Compensation Act and Merchant Shipping Act be paid?

a.

Claims must be paid in rupees

b.

Claims must be paid in foreign currency

c.

Claims may be paid in any currency preferred by the policy holder

d.

Claims may be paid in appropriate foreign currency

Discuss
Answer: (d).Claims may be paid in appropriate foreign currency Explanation:Claims arising outside India against policies issued under the Workmen's Compensation Act and Merchant Shipping Act may be paid in appropriate foreign currency. This provision allows for flexibility in claims settlement, ensuring that claims can be paid in the currency most suitable for the circumstances of the claim.
Q80.
How are reinsurance arrangements of insurance companies registered with IRDA decided?

a.

By the Reserve Bank of India

b.

By the Indian government

c.

By the respective insurance company's Boards in consultation with IRDA

d.

By the insurance companies themselves on an annual basis

Discuss
Answer: (c).By the respective insurance company's Boards in consultation with IRDA Explanation:Reinsurance arrangements of insurance companies registered with IRDA are decided by the respective insurance company's Boards in consultation with IRDA. This process allows insurance companies to determine their reinsurance strategies in alignment with regulatory guidelines and industry best practices.
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