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.
According to IRDA guidelines, what is the minimum guaranteed return for unit-linked pension/annuity products on the maturity date?

a.

3.5 percent per annum

b.

4.5 percent per annum

c.

5.5 percent per annum

d.

6.5 percent per annum

Discuss
Answer: (b).4.5 percent per annum Explanation:All ULIP pension/annuity products shall offer a minimum guaranteed return of 4.5 percent per annum on the maturity date, provided all due premiums are paid.
Q72.
What option does the insured have at the time of vesting in unit-linked pension/annuity products, according to the IRDA guidelines?

a.

Full withdrawal of the accumulated fund value

b.

Partial withdrawal of the accumulated fund value

c.

Purchase an annuity with the full accumulated fund value

d.

Surrender the policy for a lump sum payment

Discuss
Answer: (c).Purchase an annuity with the full accumulated fund value Explanation:In the case of unit-linked pension/annuity products, at the time of vesting, the insured has the option to purchase an annuity with the full accumulated fund value.
Q73.
What is the maximum percentage of the surrender value that can be commuted after the lock-in period in unit-linked pension/annuity products, as per the IRDA guidelines?

a.

One-fourth

b.

One-third

c.

One-half

d.

Two-thirds

Discuss
Answer: (b).One-third Explanation:In the case of surrender, only a maximum of one-third of the surrender value can be commuted after the lock-in period, and the remaining amount must be used to purchase an annuity.
Q74.
According to IRDA guidelines, what is the treatment of top-up premiums made during the currency of the contract, except for pension/annuity products?

a.

Treated as regular premiums

b.

Treated as single premiums

c.

Treated as partial withdrawals

d.

Not allowed

Discuss
Answer: (b).Treated as single premiums Explanation:All top-up premiums made during the currency of the contract, except for pension/annuity products, must have insurance cover treating them as single premium, as per the guidelines.
Q75.
What is the maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary, as per the prescribed limits starting from the 5th policy anniversary?

a.

3.00%

b.

3.15%

c.

3.30%

d.

3.75%

Discuss
Answer: (c).3.30% Explanation:The maximum reduction in yield for policies with an annualized premium paid for the 10th policy anniversary is 3.30%, as per the prescribed limits starting from the 5th policy anniversary.
Q76.
According to the prescribed limits starting from the 5th policy anniversary, what is the maximum reduction in yield for policies with an annualized premium paid for the 15th policy anniversary and thereafter?

a.

2.50%

b.

2.75%

c.

3.00%

d.

2.25%

Discuss
Answer: (d).2.25% Explanation:The maximum reduction in yield for policies with an annualized premium paid for the 15th policy anniversary and thereafter is 2.25%, as per the prescribed limits starting from the 5th policy anniversary.
Q77.
What is the net reduction in yield at maturity for policies with a term less than or equal to 10 years, according to the IRDA guidelines?

a.

2.25%

b.

2.50%

c.

3.00%

d.

3.15%

Discuss
Answer: (c).3.00% Explanation:The net reduction in yield at maturity for policies with a term less than or equal to 10 years shall not be more than 3.00%, as per the IRDA guidelines.
Q78.
What is the maximum loan amount that can be sanctioned under any ULIP policy, where equity accounts for more than 60% of the total share, according to the IRDA guidelines?

a.

30% of the net asset value

b.

40% of the net asset value

c.

50% of the net asset value

d.

60% of the net asset value

Discuss
Answer: (b).40% of the net asset value Explanation:The maximum loan amount that can be sanctioned under any ULIP policy, where equity accounts for more than 60% of the total share, shall not exceed 40% of the net asset value, according to the IRDA guidelines.
Q79.
What distinguishes a single premium ULIP policy from a regular premium ULIP policy?

a.

Frequency of premium payment

b.

Premium amount

c.

Investment options

d.

Policy duration

Discuss
Answer: (a).Frequency of premium payment Explanation:In the case of a single premium ULIP policy, the policyholder makes one lump sum premium payment at the beginning of the policy. In the case of a regular premium ULIP policy, the policyholder can choose the frequency at which they want to pay premiums, such as monthly, quarterly, half-yearly, or annually.
Q80.
How can the policyholder vary premiums and benefits over the lifetime in unit-linked contracts?

a.

By investing in debt securities

b.

By choosing the fund for investment

c.

By opting for a single premium policy

d.

By selecting a fixed premium amount

Discuss
Answer: (b).By choosing the fund for investment Explanation:Unit-linked contracts are designed to allow the policyholder to vary premiums and benefits over their lifetime. The policyholder can choose the fund in which their premiums will be invested, providing flexibility in investment.
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