C10 Regulatory Aspects for Insurance Agents MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on C10 Regulatory Aspects for Insurance Agents, a fundamental topic in the field of IC38 Life Insurance Agent Exam. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our C10 Regulatory Aspects for Insurance Agents 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 C10 Regulatory Aspects for Insurance Agents mcq questions that explore various aspects of C10 Regulatory Aspects for Insurance Agents problems. Each MCQ is crafted to challenge your understanding of C10 Regulatory Aspects for Insurance Agents principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC38 Life Insurance Agent Exam tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our C10 Regulatory Aspects for Insurance Agents MCQs are your pathway to success in mastering this essential IC38 Life Insurance Agent Exam topic.

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C10 Regulatory Aspects for Insurance Agents MCQs | Page 3 of 3

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Q21.
What is a prohibited action for insurance agents when dealing with prospects and policyholders?

a.

Inducing prospects to omit material information in the proposal form

b.

Demanding commission from the insurance company

c.

Issuing insurance advertisements without insurer approval

d.

Advising policyholders on policy servicing matters

Discuss
Answer: (a).Inducing prospects to omit material information in the proposal form Explanation:Insurance agents are prohibited from inducing prospects to omit material information in the proposal form.
Q22.
What is the prohibition regarding multilevel marketing for insurance agents?

a.

Encouraging prospects to participate in multilevel marketing schemes

b.

Inducting any prospect into multilevel marketing schemes

c.

Using multilevel marketing for policy solicitation

d.

Disclosing their participation in multilevel marketing to prospects

Discuss
Answer: (c).Using multilevel marketing for policy solicitation Explanation:Insurance agents are prohibited from resorting to multilevel marketing for soliciting and procuring insurance policies or inducting any prospect into multilevel marketing schemes.
Q23.
What responsibility do agents have regarding issuing insurance advertisements?

a.

They must issue advertisements without insurer approval

b.

They must obtain express approval from the insurance company before issuing advertisements

c.

They should never issue insurance advertisements

d.

They can issue advertisements as long as they follow general marketing guidelines

Discuss
Answer: (b).They must obtain express approval from the insurance company before issuing advertisements Explanation:Agents should not issue insurance advertisements without the express approval of the Insurance Company.
Q24.
Under what circumstances can an insurance agent's appointment be suspended or canceled?

a.

For not disclosing material facts in the application

b.

Violating any code of conduct

c.

Failing to resolve policyholders' complaints

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:An insurance agent's appointment can be suspended or canceled for various reasons, including not disclosing material facts, violating any code of conduct, and failing to resolve policyholders' complaints.
Q25.
What is the consequence of an insurance agent's appointment being canceled?

a.

The agent can reapply for appointment after a short period

b.

The agent can continue to act as an insurance agent

c.

The agent shall cease to act as an insurance agent

d.

The agent can appeal the decision to cancel the appointment

Discuss
Answer: (c).The agent shall cease to act as an insurance agent Explanation:If an insurance agent's appointment is canceled, they shall cease to act as an insurance agent from the date of the order.
Q26.
What is the purpose of the "Centralised list of black-listed agents" maintained by the Authority?

a.

To promote the services of top-performing agents

b.

To track the performance of insurance agents

c.

To list agents who have canceled their appointments

d.

To list agents whose appointments have been canceled or suspended due to violations

Discuss
Answer: (d).To list agents whose appointments have been canceled or suspended due to violations Explanation:The "Centralised list of black-listed agents" is used to list agents whose appointments have been canceled or suspended due to violations.
Q27.
What authority can IRDAI use to inspect the affairs of an insurance agent?

a.

Ombudsman

b.

Designated Official

c.

Investigating Officer

d.

Auditor

Discuss
Answer: (c).Investigating Officer Explanation:IRDAI can appoint an "Investigating Officer" to inspect the affairs of an insurance agent, ensuring compliance with regulations and instructions.
Q28.
Which of the following is NOT a reason for taking action against an insurance agent?

a.

Violating relevant provisions under the Acts, Rules, or Regulations

b.

Failing to submit periodical returns

c.

Resignation or surrender of appointment

d.

Embezzlement of premiums

Discuss
Answer: (c).Resignation or surrender of appointment Explanation:Resignation or surrender of appointment is not typically a reason for taking action against an insurance agent.
Q29.
Which of the following statements is incorrect? An insurance agent shall not -

a.

Solicit or procure insurance business without being appointed to act as such by the insurer

b.

Induce the prospect to omit any material information in the proposal form;

c.

Disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect

d.

Offer different rates, advantages, terms and conditions other than those offered by his insurer

Discuss
Answer: (c).Disclose the scales of commission in respect of the insurance product offered for sale, if asked by the prospect Explanation:Insurance agents are generally not required to disclose the scales of commission to prospects unless the prospect specifically asks for such information. In many cases, commissions are considered internal business details between the agent and the insurer, and they may not need to be disclosed proactively.
Q30.
An insurance agent is allowed to

a.

Interfere with any proposal introduced by any other insurance agent

b.

Resort to multilevel marketing for soliciting and procuring insurance policies

c.

Receive a share of proceeds from the beneficiary under an insurance contract

d.

Indicate the premium to be charged by the insurer for the insurance product offered for sale

Discuss
Answer: (d).Indicate the premium to be charged by the insurer for the insurance product offered for sale Explanation:Insurance agents are allowed to indicate or explain the premium to be charged by the insurer for the insurance product they are selling. It's part of their role to provide potential policyholders with information about the cost of insurance. They should clarify the terms and conditions of the insurance product, including the premium that needs to be paid.
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