IC14 - LICENTIATE - Regulation of Insurance Business -7

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Q 1. Persons wanting to take insurance coverage with insurance cos. in foreign countries need to take prior permission from __________

RBI

Government of India

IRDAI

SEBI and RBI

RBI and Government of India

Q 2. Smurfing is the process ________.

when a policyholder buys several small policies from different insurers

when multiple people or multiple deposits are made to disguise money laundering

when a policyholder repeatedly cancels policies during the free look period

All of the above

Only 1 and 3

Q 3. According to IRDA rules _________.

a TPA can work for only one insurer

An insurer can appoint only one TPA

TPA can work for more than one insurer and an insurer can appoint more than one TPA

Both 1 and 2

Both 2 and 3

Q 4. An insurer has to respond within 10 days to communication from policyholders except for _______.

recording the change of address

payment of claim

issuance of duplicate policy

noting an assignment on the policy

noting a new nomination

Q 5. Transfer of a policy of life insurance is generally covered by ________.

Sec 39 of the Insurance Act 1938

Sec 39 of the IRDA Act, 1999

Section 38 of the Insurance Act 1938

Transfer of Property Act 1882

A life insurance policy cannot be transferred

Q 6. Functions of an insurance broker would not include _________.

marinating underwriting

risk management

placement of business

assessment of loss

assisting in claims

Q 7. According to IRDA 2004 investment regulations, the percentage of investment in infrastructure and social sector should not be less than _______.

5%

10%

15%

20%

25%

Q 8. GIC undertakes underwriting of direct general insurance business in _______.

Marine cargo insurance

aviation insurance and amp; marine hull insurance

crop insurance

Marine cargo and hull insurance

civil aviation and crop insurance

Q 9. Sec 41 of the Insurance Act deals with ________.

appointment of insurance agents

prohibition of rebates

assignment of a policy

repudiation of a policy

ways of paying an insurance premium

Q 10.
What is the composition of the GRA?

one judicial member and five technical members

one judicial member and two technical members

one judicial member only

two judicial members and two technical members

only three technical members

Q 11. What is the maximum reduction in yield ie. the difference between Gross and Net yield (%pa) if the number of years elapsed since inception is 8 years?

3.30%

3.50%

3.75%

4.00%

4.25%

Q 12. Which one of the following is not a technical reserve?

Reserves for expired risks

Risks for incurred but unreported claims

Reserves for unexpired risks

Fluctuation reserves

Reserves for outstanding claims

Q 13. The Linked Insurance (ULIP) discontinued policy fund pays an interest of ______.

2%

3.50%

5%

6.50%

it does not pay any interest

Q 14. In linked products what are the options of a policyholder during the first 5 years?

Complete withdrawal from the policy without any risk cover

Revive the policy within two years

Revive the policy within 5 years

Both 1 and 2

Both 2 and 3

Q 15. _______ is the act of changing the appearance of money that comes from illegitimate sources so that it appears legitimate money.

Insider trading

ADRs and GDRs

Shell Companies

Structured Deposits

Money laundering


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