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.
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).
Q82.
How can an investor purchase a ULIP policy?

a.

Only with single premiums

b.

Only with regular premiums

c.

Either with single premiums or regular premiums

d.

Only with lump-sum premiums

Discuss
Answer: (c).Either with single premiums or regular premiums Explanation:An investor can purchase a ULIP policy with either a single premium or regular premiums.
Q83.
What do the guidelines issued by IRDA affect regarding ULIP products?

a.

Only product design

b.

Only market conduct

c.

Only disclosures

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Guidelines issued by IRDA affect various areas related to ULIP products such as product design, market conduct, disclosures, and advertisements.
Q84.
What is the minimum policy term for ULIP products?

a.

1 year

b.

3 years

c.

5 years

d.

10 years

Discuss
Answer: (c).5 years Explanation:The minimum policy term for ULIP products is 5 years.
Q85.
What is the difference between the NAV at the time of entry and exit called?

a.

Policy value

b.

Premium spread

c.

Bid-offer spread

d.

Residuary payment

Discuss
Answer: (c).Bid-offer spread Explanation:The difference in NAV at the time of entry (offer price) and exit (bid price) is known as bid-offer spread.
Q86.
During which period are no residuary payments made on lapsed/surrendered/discontinued ULIP policies?

a.

Premium payment period

b.

Maturity period

c.

Lock-in period

d.

Policy term

Discuss
Answer: (c).Lock-in period Explanation:During the lock-in period, no residuary payments on policies that have lapsed/surrendered/discontinued can be made. The lock-in period also applies to top-up premiums.
Q87.
What do top-up premiums allow ULIP policyholders to do?

a.

Decrease their annual contribution

b.

Avoid initial allocation charges

c.

Extend the policy term

d.

Decrease the policy value

Discuss
Answer: (b).Avoid initial allocation charges Explanation:Top-up premiums allow ULIP policyholders to increase their annual contribution while avoiding the initial allocation charges.
Q88.
What are the three stages of money laundering?

a.

Placement, restructuring, amalgamation

b.

Integration, processing, reconciliation

c.

Placement, layering, integration

d.

Analysis, synthesis, conclusion

Discuss
Answer: (c).Placement, layering, integration Explanation:The three stages of money laundering are placement, layering, and integration.
Q89.
What is the purpose of the Financial Action Task Force (FATF)?

a.

Development of national and international financial regulations

b.

Promotion of money laundering techniques

c.

Development and promotion of policies to combat money laundering and terrorist financing

d.

Implementation of financial sanctions against certain countries

Discuss
Answer: (c).Development and promotion of policies to combat money laundering and terrorist financing Explanation:The purpose of the Financial Action Task Force (FATF) is the development and promotion of national and international policies to combat money laundering and terrorist financing.
Q90.
What is the primary aim of the KYC process?

a.

To maximize profits for financial institutions

b.

To increase bureaucracy in financial transactions

c.

To weed out bad customers and protect good ones

d.

To deny insurance services to the public

Discuss
Answer: (c).To weed out bad customers and protect good ones Explanation:The primary aim of the KYC (Know Your Customer) process is to weed out bad customers and protect good ones.
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