IC14 Mock Test Sample 3
This set of questions covers key concepts in insurance regulation, consumer protection, and ULIP policies under IC14. It includes topics such as repudiation of life policies, NAV treatment during free look period, and jurisdiction of the Insurance Ombudsman. It also highlights regulatory definitions like DCB, FIU reporting requirements, and Geneva Association. Operational aspects include TPA services, Executive Committee functions, and IBNR reserves. Consumer-related provisions cover complaint filing conditions, fines for non-compliance, and definition of a consumer under the Consumer Protection Act. Additionally, it addresses policy classifications, premium accounting, nominee rights, and charges excluded from ULIP net yield calculations.
1. Repudiation of life policy will result in forfeiting the policy amount by _______.
a) Nominee
b) Actuary
c) Insurer
d) Agent
2. In ____________, any increase or decrease in NAV during the free look period is passed on to the customer.
a) Tax Saving Mutual Funds
b) Endowment plan
c) Declared policy plan
d) Unit linked insurance plans
3. In the purview of the insurance Ombudsman, repudiation of claim is by ________.
a) The Agent
b) The Proposer
c) The Policy holder
d) Any aggrieved person who has bought an insurance policy
4. DCB means _________.
a) Development Countrywide Bank
b) Development Credit Bank
c) District Co-operative Banks
d) Directorate of Credit Business
5. ULIP annual report explains fund performance in relation to _________.
a) Investors profile
b) Market developments
c) Economic scenario
d) Statements B and C are correct
6. Minimum fine for not following consumer forum order is _______.
a) ₹1000
b) ₹2000
c) ₹5000
d) ₹10000
7. In which insurance shall the policy document contain a schedule of details?
a) Property insurance policy
b) Motor insurance policy
c) Micro insurance policy
d) Marine insurance policy
8. Liability Insurance comes under ______ head in non-life insurance.
a) Fire insurance
b) Marine insurance
c) Miscellaneous
d) Property insurance
9. Services given by a TPA are called ________.
a) Special Services
b) Financial Services
c) Agency Services
d) Banking Services
10. Function of the Executive Committee of General Insurance Council is ________.
a) Advise brokers
b) Advise general insurers
c) Audit insurance companies
d) Underwrite insurance business
11. Correct prerequisite for filing complaint before Ombudsman is ________.
a) Subject not before court/forum
b) Complaint within 3 years
c) Relief within ₹50 lakhs
d) Complaint through lawyer
12. Fund Value or net fund value means ________.
a) Units × NAV per unit
b) Net asset value
c) Aggregate asset value
d) Policy account value
13. Financial institutions must report to FIU ________.
a) Cash transactions ₹10 lakh+
b) Foreign currency receipts ₹10 lakh+
c) Fake currency reports
d) All the above
14. Geneva Association is ________.
a) International Association for Study of Insurance Economics
b) Financial Services Authority
c) Insurance Advisors Association
d) Insurance Regulators Association
15. Charges not included in net yield of linked policies are ________.
a) Fund management charges
b) Policy allocation charge
c) Mortality charges
d) Premium allocation charge
16. Premium received in advance is shown under ________.
a) Current assets
b) Current income
c) Current liabilities
d) Deferred liabilities
17. Nominees appointed by life assured can ________.
a) Share policy monies
b) Share with legal heirs
c) Receive on behalf of heirs
d) All of the above
18. IBNR reserve account is for ________.
a) Claims not reported
b) Claims under reported
c) Claims reported
d) Both 1 and 2
19. Which plans do not offer a settlement option?
a) Life insurance plans
b) Unit linked plans
c) Pension plans
d) Annuity plans
20. Who is not a consumer under Consumer Protection Act, 1986?
a) Insurance buyer
b) Bank depositor
c) Washing machine buyer
d) Commercial purchase consumer
