IC14 Mock Test Sample 8
These questions focus on key insurance concepts, regulatory provisions, and operational guidelines. They cover definitions like claims, roles in dispute resolution (ADR, GRA), and jurisdiction limits. Important rules for micro insurance agents, TPAs, and brokers are included, along with compliance timelines for insurers. Legal aspects such as policy transfer (Sec 38), prohibition of rebates (Sec 41), and investment norms are highlighted. Topics on money laundering (smurfing stages), foreign insurance permissions, and ULIP yield limits are also tested. Overall, the set emphasizes regulatory knowledge, policy servicing processes, and ethical practices essential for insurance exams and industry understanding.
1. What does claims refer to?
a) Claim refers to damages incurred by policy holder
b) Claim refers to damages incurred by insurance company
c) Claim refers an amount paid by policy holder
d) Claim refers to a fixed amount paid to the nominees
2. Who has the choice to opt for mediation / conciliation (ADR)?
a) Investigating officers
b) Court
c) Claimant
d) Supervisor
3. In which cases will the GRA have no jurisdiction?
a) In cases relating to original party
b) In cases relating to first party
c) In cases relating to second party
d) In cases relating to third party
4. A Micro Insurance agent shall _______.
a) Also distribute other insurance products
b) Not be under IRDA rules
c) Employ specified persons with approval
d) Work for more than one insurer
5. ______ accounts are used in second stage of money laundering.
a) Saving & Current Accounts
b) CC & OD Accounts
c) Home & Remote Accounts
d) Investment & Expense Accounts
6. The full form of GRA is ________.
a) Government Rationing Association
b) Group Reinsurance Act
c) Grievances Redressal Authority
d) Graduate Research Assistant
7. Duplicate license fee for corporate agent is ______.
a) Rs. 50
b) Rs. 100
c) Rs. 500
d) Rs. 1000
8. In France, ULIP duration must be at least ____ years.
a) 3
b) 5
c) 8
d) 10
9. Which statement is true?
a) New policy letters for SSS
b) Renewal receipts for SSS
c) Cover letters for SSS
d) FPR issued for SSS
10. Net reduction in yield (≤10 years) should not be ______.
a) More than 3%
b) More than 2.75%
c) More than 2.25%
d) Less than 2.25%
11. Permission for foreign insurance is required from ______.
a) RBI
b) Government of India
c) IRDAI
d) SEBI & RBI
12. Smurfing is the process ______.
a) Buying small policies
b) Multiple deposits to hide money
c) Repeated policy cancellation
d) All of the above
13. According to IRDA rules ______.
a) TPA works for one insurer only
b) Insurer appoints only one TPA
c) TPA can work for many insurers
d) Both a & b
14. Insurer must respond in 10 days except for ______.
a) Change of address
b) Payment of claim
c) Duplicate policy
d) Assignment noting
15. Transfer of life insurance policy is covered by ______.
a) Sec 39 Insurance Act
b) Sec 39 IRDA Act
c) Sec 38 Insurance Act
d) Transfer of Property Act
16. Functions of broker would NOT include ______.
a) Underwriting
b) Risk management
c) Placement of business
d) Assessment of loss
17. Minimum investment in infrastructure/social sector is ______.
a) 5%
b) 10%
c) 15%
d) 20%
18. GIC underwrites direct business in ______.
a) Marine cargo
b) Aviation & marine hull
c) Crop insurance
d) Marine cargo & hull
19. Sec 41 of Insurance Act deals with ______.
a) Appointment of agents
b) Prohibition of rebates
c) Assignment
d) Repudiation
20. Max reduction in yield after 8 years is ______.
a) 3.30%
b) 3.50%
c) 3.75%
d) 4.00%
