IC14 Mock Test Sample 20
These questions focus on insurance regulations, ULIP features, and legal provisions under IRDAI and the Insurance Act. IRDAI promotes growth of insurance and reinsurance while protecting policyholders. GRA plays a key role in dispute resolution through ADR. ULIPs provide benefits like fund protection and tax advantages subject to duration. Key legal provisions include Section 38 (assignment) and Section 59 (risk assumption). Marine insurance is an exception where written proposals are not mandatory. Regulatory compliance like Prudential Investment Norms is done quarterly. Customer-centricity is emphasized as customers are the most important element in business. Understanding these ensures clarity in insurance operations, compliance, and exam preparation.
1. What does the IRDAI Act promote?
a) Growth of Insurance and Reinsurance business
b) Growth of Life and Non-life insurance business
c) Growth of General insurance and theft insurance
d) Growth of Life insurance and Reassurance
2. Who will refer disputes for mediation or conciliation (ADR)?
a) District Court judge
b) Consumer Court judge
c) Consumer councils
d) Grievance Redressal Authorities (GRA)
3. On what basis is the policy issued for workmen's compensation?
a) Declaration policy
b) Fidelity Guarantee
c) Adjustable premium
d) Sum assured
4. ULIP returns are tax free in Germany if policy duration is at least ____ years.
a) 5
b) 8
c) 10
d) 12
5. A company must be formed under which act to get an insurance broker license?
a) IRDAI Act 1999
b) Insurance Act 1938
c) Companies Act 1956
d) Indian Contract Act 1872
6. In ________ policy, risk can be assumed if 75% premium is received.
a) Fidelity Guarantee Insurance
b) Marine Insurance
c) Declaration insurance
d) Adjustable premium policy
7. The full form of 'FGD' is ________.
a) Focus Group Discussion
b) Family Group Discussion
c) Finance Group Discussion
d) Fiscal Group Discussion
8. Who recommended formation of GRA?
a) IRDAI
b) Law Commission
c) Ombudsman
d) Government
9. Assignment and transfer of policies were amended under Section ______.
a) 37
b) 38
c) 39
d) 40
10. Which of the following is due to deficiency in service?
a) Quick settlement of claims
b) Issuance of policy receipts
c) Transfer of files
d) None of the above
11. The selection committee recommends _______ for GRA.
a) Permanent members
b) Judicial members
c) Subordinate members
d) Technical members
12. Who is the most important element for a business entity?
a) Buyers
b) Customers
c) Shareholders
d) Policy holder
13. Written proposal is mandatory except in ______ insurance.
a) Fire
b) Life
c) Marine
d) Burglary
14. The full form of LIMRA is ________.
a) Life Insurance Management and Research Association
b) Life Insurance Monitoring and Reporting Authority
c) Life Insurance Marketing and Redressal Authority
d) Life Insurance Maintenance and Research Association
15. Prudential Investment Norms Compliance Report is submitted on ______ basis.
a) Weekly
b) Monthly
c) Quarterly
d) Half yearly
16. A ULIP policyholder can safeguard the ________.
a) Value of equity shares in bad times
b) Value of the fund in good times
c) Value of the fund in bad times
d) Value of the asset in good times
17. Death benefit must be ________ of total premiums paid.
a) Not less than 105%
b) Not less than 125%
c) Not more than 120%
d) Not more than 105%
18. Minimum deposit rate under Sec 59(1) is ______ per mille.
a) 1
b) 1.5
c) 2
d) 2.5
19. Renewal application for broker license is as per Regulation _____.
a) 10
b) 13
c) 34
d) 35
20. Free Look period is available in ______ insurance.
a) Fire insurance
b) Life insurance
c) Marine insurance
d) Motor insurance
