IC14 Mock Test Sample 1
IC14 focuses on regulations governing insurance business in India, including referral arrangements, grievance redressal authorities (GRA), and policy revival rules. It covers financial aspects like claims equalization reserves, premium charges, and accounting treatment. The role and licensing of intermediaries such as brokers and surveyors are highlighted, along with professional indemnity requirements. It also includes ULIP guidelines like switching charges, minimum sum assured, and loan limits. Consumer protection topics include appeals in forums and key feature documents. Historical aspects like nationalization of LIC (1956) and GIC’s role are included, along with microinsurance and regulatory limits on policy charges and benefits.
1. What does a referral arrangement allow?
a) Sale of insurance products in the premises of the referral co
b) Undertake insurance related activities in the referral co
c) Sharing of database of the customers of the referral co
d) All the above
2. The jurisdiction of the GRA will not cover ________.
a) Dispute between the nominee and the legal heirs
b) Dispute in settlement of claims
c) Delay in settlement of claims
d) Dispute between insurer and insurer
3. In case of revival of a lapsed policy the contract is treated as _______.
a) Continuation of the old contract
b) It is treated as a new contract
c) Depends on the insurer
d) A lapsed policy cannot be revived
4. A claims equalization reserve is set up to ________.
a) To handle catastrophic events
b) It serves as a tax management tool
c) It smoothens the effect of bad years
d) Only 2 and 3
5. What is the cap on charges for policy administration?
a) 2.50%
b) 4.50%
c) 5%
d) 3.50%
6. Which intermediary has to maintain a professional indemnity insurance?
a) Insurance broker
b) Composite agent
c) Surveyor
d) Corporate agent
7. In unit linked policies how is the minimum health cover calculated?
a) 7 times premium or ₹100000 (below 45 years)
b) 5 times premium or ₹100000 (below 45 years)
c) 5 times premium or ₹75000 (45 years or more)
d) Both b and c
8. The license for a surveyor is valid for ______.
a) 1 year
b) 2 years
c) 3 years
d) 5 years
9. Appeal in the National Commission can be made subject to deposit of ______.
a) ₹25,000
b) ₹35,000
c) ₹50,000
d) ₹1,00,000
10. What is Switching Charge?
a) Charged at surrender
b) Charged for fund transfer
c) Charged at part withdrawal
d) Cost of life cover
11. In 1956, life insurance business was nationalised to form ________.
a) SBI Life
b) Insurance Association of India
c) LIC of India
d) GIC of India
12. IRDA has stipulated policy cannot be repudiated after ______.
a) 1 year
b) 2 years
c) 3 years
d) 4 years
13. Objective of the 'Key Feature Document' is ________.
a) Educate customers
b) Help agent sell
c) Help policyholder decide suitability
d) Show product superiority
14. In RP contracts, minimum cover for age above 45 years is ______.
a) 5 times premium or ₹25,000
b) 3 times premium or ₹25,000
c) 5 times premium or ₹75,000
d) 2 times premium or ₹75,000
15. Appeal to State Commission requires deposit of ______.
a) ₹20,000
b) ₹25,000
c) ₹35,000
d) ₹50,000
16. GIC underwrites ______ business in aviation and crop insurance.
a) Life Insurance
b) Reinsurance
c) General Insurance
d) All of the above
17. Premium received in advance is shown under ________.
a) Current Assets
b) Current Liabilities
c) Fixed Assets
d) Fixed Liabilities
18. ______ is a Micro Insurance product.
a) Dog Insurance
b) Fire Insurance
c) Crop Insurance
d) Marine Insurance
19. Maximum loan for ULIP (>60% equity) is ______ of surrender value.
a) 25%
b) 30%
c) 40%
d) 50%
20. Temporary insurance certificate is called ________.
a) Policy Bond
b) Policy Letter
c) Cover Note
d) Policy Acknowledgement
