IC14 - LICENTIATE - Regulation of Insurance Business -32

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Q 1. Q1) How to decide whether a certain transaction is suspicious or not and to be reported accordingly?

a) Any transactions that appear to be not according to the type of activity may be reported without further inquiries

b) When a transaction looks suspicious, the officials may examine the purpose through discussion with the customer, and if no satisfactory explanation is forthcoming such transactions should be considered

c) An auditor or investigating officials are necessary before considering a transaction to be of a suspicious nature

d) Only such transactions which are not according to the type of activity and more than Rs.10 Lakh or equivalent to its foreign exchange are to be considered
 
Q 2. Q2) Micro Insurance products need prior approval of the authority under the File and Use procedure and every such product shall prominently carry the caption ________

a) Insurance Product

b) Micro Insurance Product

c) Life Insurance Product

d) Non-Life Insurance Product
 
Q 3. Q3) The President of the state Commission should be a ________.

a) Retired IRDA Chairman

b) Retired SEBI Chairman

c) District Judge

d) High Court Judge
 
Q 4. Q4) What is known as Settlement Option in ULIP

a) A Death Claim is known as a Settlement option in ULIP

b) A maturity claim is known as a settlement option in ULIP

c) Option in which maturity claim may be payable not on the date of maturity as chosen by the policyholder but later and in installments.

d) Option in which maturity claim may be payable not on the date of maturity as chosen by the policyholder but later and in lumpsum
 
Q 5. Q5) Repudiation of life policy will result in forfeiting the policy amount by_______________.

a) Nominee

b) Actuary

c) Insurer

d) Agent
 
Q 6. Q6) Who among the following is a Low-Risk Customer?

a) NRI

b) HNI

c) Companies having close family shareholding or beneficial ownership

d) None of these
 
Q 7. Q7) Section 39 of the Insurance Act 1938 provides that the policyholder may nominate _______ to whom the money secured by the policy shall be paid in the event of the death of the policyholder

a) Only one person

b) One or more persons

c) At least two people

d) Maximum three people
 
Q 8. Q8) IAT in the insurance industry stands for

a) Insurance Appelate Tribunal

b) Investment Asset Tax

c) Insurance Assessment Tribunal

d) Investment Advisor Tribunal
 
Q 9. Q9) Expand the term CAC

a) Consumer Asset Committee

b) Customer Asset Committee

c) Consumer Affairs Committee

d) Customer Affairs Committee
 
Q 10. Q10) Within how many days should a proposal be processed by the Insurer?

a) 15 days

b) 30 days

c) 10 days

d) 60 days
 
Q 11. Q11) How can one assess if an insurance company will be able to meet its claims or not?

a) Price Earning Ratio

b) Pro? stability of the company

c) Share Capital of the company

d) Solvency Ratio
 
Q 12. Q12) Which one of the following statements is correct?

a) IRDA has prescribed proposal forms for all insurers.

b) Renewal premium cannot be paid without the renewal notice.

c) Both (a) and (b) statements are correct.

d) Both (a) and (b) statements are wrong.
 
Q 13. Q13) On what grounds is the repudiation of the policy not permitted?

a) Mis-statement

b) Disloyalty

c) Distrust

d) Suppression of material fact
 
Q 14. Q14) Normally, the following types of customers require higher due diligence under KYC norms,

a) politically exposed persons (PEPs) of foreign origin.

b) non-resident customers;

c) Small Farmers

d) high net worth individuals;
 
Q 15. Q15) The amount of relief payable under the Public Liability Insurance Act, 1991 for a Fatal Accident is

a) Rs 10,000

b) Rs 12,500

c) Rs 25,000

d) Rs.50,000


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