IC14 - LICENTIATE - Regulation of Insurance Business -1

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Q 1. What does a referral arrangement allow?

Sale of insurance products on the premises of the referral co

Undertake insurance-related activities in the referral co.

Sharing of a database of the customers of the referral co.

All the above

None of the above

Q 2. The jurisdiction of the GRA will not cover ________.

dispute between the nominee and the legal heir's

dispute in settlement of claims

delay in settlement of claims

dispute between the insurer and the insurer

dispute between insurer and intermediaries

Q 3. In case of revival of a lapsed policy, the contract is treated as _______.

Continuation of the old contract

It is treated as a new contract

Depending on the insurer, it may treat an old or new contract as per its policy.

A lapsed policy cannot be revived

None of the above

Q 4.
A claims equalization reserve is set up to ________.

to handle claims from catastrophic events

It serves as a tax management tool.

It smoothens the effect of bad years.

Only 2 and 3

All the above

Q 5. What is the cap on charges for policy administration?

2.50%

4.50%

5%

1%

3.50%

Q 6. Which intermediary has to maintain professional indemnity insurance?

insurance broker

composite agent

surveyor

corporate agent

medical examiner

Q 7. In unit-linked policies how is the minimum health cover calculated?

7 times the annual premium or Rs.100000 p.a. whichever is higher for less than 45 years of age

5 times the yearly premium or Rs.100000 p.a. whichever is higher for less than 45 years of age

5 times the annual premium or Rs.75000 p.a. whichever is higher for 45 years or more

As per both 1 and 2

As per both 2 and 3

Q 8. The license for a surveyor is valid for _____.

1 year

2 years

3 years

4 years

5 years

Q 9.
The law commission has recommended 5 years after which a policy cannot be repudiated. However, IRDA has stipulated -

1 year

2 years

3 years

4 years

6 years

Q 10. The objective of the ' Key feature document ' is __________.

To educate the customer on the insurance industry

To enable the agent to make a quick sale

To enable the policyholder to decide as to whether the product suits him or her

To explain how the product is superior to the competition

None of the above

Q 11. An appeal in the National Commission can be made subject to a deposit of _______ of the amount awarded or 50% whichever is less.

Rs. 25000

Rs.35000

Rs. 50000

Rs. 75000

Rs. 100000

Q 12. What is a Switching Charge?

It is levied on the unit fund at the time of surrender

It is levied on the transfer of monies from one fund to another

It is levied on the unit fund at the time of part withdrawal

It is the cost of life cover

None of the above

Q 13. In Regular Premium (RP) contracts, what is the minimum annual health cover for age at entry above 45 years?

5 times the annualised premiums or Rs 25000 pa whichever is higher

3 times the annualised premiums or Rs 25000 pa whichever is higher

5 times the annualised premiums or Rs 75000 pa whichever is higher

2 times the annualized premiums or Rs 75000 pa whichever is higher

3 times the annualized premiums or Rs 50000 pa whichever is higher

Q 14. In 1956, the life insurance business was nationalized and the operations of companies were merged to form __________.

SBI Life Insurance Co.

Insurance Association of India

LIC of India

GIC of India

United Insurance

Q 15. Appeal against the District forum award can be made to the State Commission, subject to a deposit of _______ of the amount awarded or 50% whichever is less.

Rs. 20,000

Rs. 25,000

Rs. 35,000

Rs. 50,000

Rs. 1,00,000


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