IC14 - LICENTIATE - Regulation of Insurance Business -3

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Q 1. Which one of the following options is a correct prerequisite condition for filing a complaint before the Ombudsman?

subject matter should not be before a court or consumer forum

complaints should be lodged within 3 years of the event

total relief must be within 50 lakhs

complaints must be on corporate lines

complaint has to be filed via a lawyer

Q 2. Fund Value or net fund value means _________.

The total number of the units multiplied by the net asset value per unit

Net asset value

Aggregate asset value

Policy account value

None of the above

Q 3. Financial institutions have to report to the FIU _________.

All cash transactions of Rs.10 lakhs or more within a month

Foreign currency receipts of 10 lakhs or more by nonprofit entities

Any report of fake currency being used

All the above

None of the above

Q 4. Which association is known as the Geneva Association?

International Association for the Study of Insurance Economics

Financial Services Authority

International Association of Insurance Advisors

National Association of Insurance Commissioners

Insurance Regulatory Development Authority

Q 5. In linked policies which charges are not included in the calculation of net yield?

Fund management charges

Policy allocation charge

Mortality and morbidity charges

Premium allocation charge

Surrender charge

Q 6. The premium received in advance not related to the current accounting period is to be shown under __________.

current assets

current income

current liabilities

contingent liabilities

deferred liabilities

Q 7. Nominees appointed by the life assured can _________.

share the policy monies amongst themselves

Share the money with the legal heirs

can only receive the money on behalf of legal heirs

All of above

None of above

Q 8. IRDA regulations clearly state that risk cannot be assumed before receipt of premium by the insurer but under the _________, the insurer cannot claim nonreceipt of premium as grounds for refusal of payment.

Personal Accident Policy Act

Motor vehicles act

Rule no 59 of the Insurance Act,1938

Marine Insurance Act 1963

Public Liability Act,1991

Q 9. Which one is not a condition for licensing a TPA?

At no time should the TPA have a working capital of less than one crore

At least two of the directors of the TPA shall be qualified doctors

Aggregate foreign shareholding cannot be more than 26%

The minimum paid-up capital should be 1 crore

The application should be accompanied by nonrefundable fees of Rs.20000

Q 10. The IBNR reserve account is for _________.

claims that have not been reported

claims that have been under-reported

claims that have been reported

Both 1 and 2

All of the above

Q 11. Which plans do not offer a settlement option?

life insurance plans

unit linked plans

pension plans

annuity plans

Both 3 and 4

Q 12. Who is not a consumer under the Consumer Protection Act, of 1986?

A person who buys insurance

A person who makes a fixed deposit in a bank

A consumer who buys a washing machine

A consumer who makes a commercial purchase

A consumer who has lunch in a restaurant

Q 13. Which is not a function of the Executive Committee of the General Insurance Council?

To aid and advise general insurers on standards of conduct

To render advice to IRDA in a matter of controlling expenses

To bring to IRDA`s notice any harmful practice of any general insurer

To amicably settle disputes between general insurers

To act in matters with the approval of IRDA

Q 14. Which of the following options is true for the Solatium Fund?

Provides compensation to victims of hit-and-run accidents

The central govt., the state govt. and amp; the general insurance industry contributes to the fund

The central govt. provides a scheme to administer the fund

All the above

None of the above

Q 15. If a policy is returned during the free look period, the insurer will _________.

refund the entire premium amount

forfeit the entire amount

the policy cannot be returned

refund amount after deducting stamp duty, medical charges, and risk premium

None of the above


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