IC14 Mock Test Sample 4
This set of questions focuses on regulatory provisions, legal frameworks, and operational guidelines in insurance under IC14. It covers important acts such as the Motor Vehicles Act and rules related to premium receipt and risk commencement. Key regulatory topics include TPA licensing conditions, ULIP lock-in periods, Solatium Fund structure, and free look period refunds. It also addresses grievance redressal systems like the Insurance Ombudsman and IAT jurisdiction. Additional areas include KYC norms, money laundering stages, microinsurance group requirements, and premium non-realization effects. The questions also highlight consumer protection, claim settlement procedures, and compensation mechanisms under motor vehicle laws.
1. IRDA regulations state risk cannot be assumed before premium receipt, but under the _________ the insurer cannot deny payment for non-receipt of premium.
a) Personal accident policy act
b) Motor vehicles act
c) Rule no 59 of Insurance Act, 1938
d) Public liability act, 1991
2. Which one is not a condition for licensing of a TPA?
a) Working capital not less than one crore
b) At least two directors are qualified doctors
c) Foreign shareholding not more than 26%
d) Minimum paid up capital is 1 crore
3. Which is not a function of the Executive Committee of the General Insurance Council?
a) Aid insurers on standards of conduct
b) Advise IRDA on controlling expenses
c) Report harmful practices to IRDA
d) Settle disputes between general insurers amicably
4. Which statement is true for the Solatium Fund?
a) Compensation for hit and run victims
b) Contributions by govt and insurance industry
c) Administered by central government scheme
d) All the above
5. If a policy is returned during free look period, the insurer will ________.
a) Refund entire premium
b) Forfeit entire amount
c) Policy cannot be returned
d) Refund after deductions
6. What is the lock-in period in ULIPs?
a) 3 years
b) 5 years
c) 7 years
d) 10 years
7. When claim is ready but payee cannot be identified, the insurer will ________.
a) Forfeit amount after 30 days
b) Transfer to IBNR reserve
c) Hold amount with interest
d) Transfer to IRDA
8. IAT’s jurisdiction will extend to ________.
a) Consumer forum orders
b) Civil court orders
c) SEBI orders
d) IRDA and GRA orders
9. In general insurance, non-realization of premium renders contract ________.
a) Voidable
b) Cancelled
c) Void ab initio
d) Caveat emptor
10. Minimum members in a group for life micro insurance is ________.
a) 20
b) 25
c) 30
d) 40
11. KYC norms include ________.
a) Identification details
b) Address verification
c) Photographs
d) All of the above
12. Odd one out under Rule 59 exemptions is ________.
a) Fidelity guarantee scheme
b) First loss policies
c) Declaration policies
d) Adjustable premium policies
13. Insurance Ombudsman entertains complaints when relief is less than ________.
a) ₹1 crore
b) ₹50 lakhs
c) ₹20 lakhs
d) ₹10 lakhs
14. Example of low-risk customer is ________.
a) Close family shareholding companies
b) Non-residents
c) High net worth individuals
d) All of the above
15. President of State Commission should be a ________.
a) Retired IRDA Chairman
b) Retired SEBI Chairman
c) District Judge
d) High Court Judge
16. Risk commences when premium is sent by postal money order on ________.
a) Receipt by insurer
b) Booking date of money order
c) Entry in insurer’s books
d) Depends on policy terms
17. One stage of money laundering is ________.
a) Shell companies
b) Integration
c) Smurfing
d) Hedging
18. Who is responsible for training agents for ULIP sales?
a) IRDA
b) Life insurance companies
c) Life Insurance Councils
d) Insurance Institute of India
19. What is money laundering?
a) Illegal money converted to legal money
b) Illegal money into stocks
c) Illegal money into gold
d) Illegal money into cash
20. Under Motor Vehicle Act, compensation is based on ________.
a) Income and dependents
b) Age and dependents
c) Age and income
d) Income and family size
