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 9 of 32

Discover more Topics under IC 14 Regulations of Insurance Business

Q81.
How may local brokers remit reinsurance premium on behalf of insurers?

a.

Through direct payment to the overseas insurance company

b.

Through any authorized dealer designated by the insurance company

c.

Through the Reserve Bank of India

d.

Through their own bank accounts

Discuss
Answer: (b).Through any authorized dealer designated by the insurance company Explanation:Local brokers may remit reinsurance premium on behalf of insurers through any authorized dealer designated by the insurance company. This process ensures compliance with regulatory requirements and facilitates the smooth flow of reinsurance transactions.
Q82.
What documents are required for local brokers to remit reinsurance premium on behalf of insurers?

a.

Certificate from the Reserve Bank of India

b.

Certificate from the insurance company's Board

c.

Debit notes from the overseas insurance company, detailed premium settlement statement from the individual insurance company, and a certificate from the local broker's Chartered Accountant

d.

Certificate from the insurance company's Board and a certificate from the Reserve Bank of India

Discuss
Answer: (c).Debit notes from the overseas insurance company, detailed premium settlement statement from the individual insurance company, and a certificate from the local broker's Chartered Accountant Explanation:The required documents for local brokers to remit reinsurance premium on behalf of insurers include debit notes from the overseas insurance company, a detailed premium settlement statement from the individual insurance company, and a certificate from the local broker's Chartered Accountant. These documents ensure transparency and compliance with regulatory guidelines in the remittance process.
Q83.
What is the purpose of foreign currency accounts maintained by insurers outside India?

a.

To facilitate personal transactions of the insurer's employees

b.

To hold surplus funds for speculative investments

c.

To facilitate transactions and expenses related to general insurance business undertaken in foreign countries

d.

To avoid taxation on profits earned abroad

Discuss
Answer: (c).To facilitate transactions and expenses related to general insurance business undertaken in foreign countries Explanation:The purpose of foreign currency accounts maintained by insurers outside India is to facilitate transactions and expenses related to general insurance business undertaken in foreign countries. These accounts help manage international financial activities efficiently and comply with local regulations.
Q84.
Under what circumstances can insurers make investments abroad without prior approval from the Reserve Bank of India?

a.

Only for meeting statutory requirements in the foreign country concerned

b.

Only for speculative purposes

c.

Only for funding acquisitions of foreign insurance companies

d.

For renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits

Discuss
Answer: (d).For renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits Explanation:Insurers can make investments abroad without prior approval from the Reserve Bank of India for renewal of existing investments, reinvestment of redemption proceeds of existing investments, and fresh investment out of funds abroad, in government/semi-Government securities and bank deposits. These investments are permitted to meet specific requirements and are subject to regulatory guidelines.
Q85.
What is micro-insurance?

a.

Insurance designed for high-income individuals

b.

Insurance against specific perils for low-income individuals

c.

Insurance exclusively for corporate entities

d.

Insurance for middle-income families

Discuss
Answer: (b).Insurance against specific perils for low-income individuals Explanation:Micro-insurance refers to the protection of low-income individuals against specific perils in exchange for regular premium payments proportionate to the likelihood and cost of the risk involved.
Q86.
When was the concept of micro-financing first experimented?

a.

1984

b.

1990

c.

1974

d.

2000

Discuss
Answer: (c).1974 Explanation:The concept of micro-financing was first experimented in Bangladesh in 1974 by Prof. Muhammad Yunus as an idea to eradicate poverty.
Q87.
What do Unit Linked Insurance Plans (ULIPs) offer?

a.

Only life protection

b.

Only investment benefits

c.

Both life protection and investment benefits

d.

Only health insurance benefits

Discuss
Answer: (c).Both life protection and investment benefits Explanation:ULIPs offer both life protection and investment benefits to the policyholder.
Q88.
What do IRDA Micro-Insurance Regulations 2005 regulate?

a.

Macro-insurance products

b.

Only life insurance products

c.

Only investment products

d.

Micro-insurance products and agents

Discuss
Answer: (d).Micro-insurance products and agents Explanation:IRDA Micro-Insurance Regulations 2005 regulate micro-insurance products and agents.
Q89.
How are the returns from Unit Linked Insurance Plans (ULIPs) determined?

a.

Fixed returns set by the insurance company

b.

Independent of the fund's performance

c.

Dependent upon the policyholder's age

d.

Dependent upon the performance of the fund

Discuss
Answer: (d).Dependent upon the performance of the fund Explanation:The returns from ULIPs are dependent upon the performance of the fund chosen by the policyholder.
Q90.
What represents the policyholder's investment in a Unit Linked Insurance Plan (ULIP)?

a.

Policy term

b.

Net Asset Value (NAV)

c.

Surrender value

d.

Premium payment frequency

Discuss
Answer: (b).Net Asset Value (NAV) Explanation:The policyholder's investment in a ULIP is denoted in the form of units and represented by the Net Asset Value (NAV).
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