IC14 Mock Test Sample 9
These questions cover important insurance regulations, financial safeguards, and operational practices. They highlight the structure of authorities like GRA, types of technical reserves, and ULIP features such as discontinued fund interest and policyholder options. Key compliance aspects include investment norms, claim settlement timelines, and penal interest for delays. Concepts like money laundering, CFT, and suspicious transactions emphasize risk monitoring. Questions also test knowledge of reinsurance limits, rural sector obligations, and minimum policy terms. Additionally, mechanisms like Lok Adalats and solvency ratio underline claim settlement efficiency and insurer’s financial strength, ensuring policyholder protection and industry stability.
1. What is the composition of the GRA?
a) One judicial member and five technical members
b) One judicial member and two technical members
c) One judicial member only
d) Two judicial members and two technical members
2. Which one of the following is not a technical reserve?
a) Reserves for expired risks
b) Risks for incurred but unreported claims
c) Reserves for unexpired risks
d) Fluctuation reserves
3. ULIP discontinued policy fund pays an interest of ______.
a) 2%
b) 3.50%
c) 5%
d) 6.50%
4. Options available during first 5 years in linked products?
a) Complete withdrawal without risk cover
b) Revive within 2 years
c) Revive within 5 years
d) Both a and b
5. ______ is the act of converting illegal money into legal money.
a) Insider trading
b) ADRs and GDRs
c) Shell Companies
d) Money laundering
6. Insurers incorporated outside India are called ______.
a) Foreign Insurers
b) Associate Members
c) Members
d) Council
7. Minimum investment in Government securities is ______.
a) 10%
b) 20%
c) 30%
d) 40%
8. Maximum time to settle claim after receiving all documents is ______ days.
a) 10
b) 30
c) 45
d) 60
9. In SP contracts, 125% SA applies below age ______.
a) 40
b) 45
c) 50
d) 55
10. IRDAI regulates Life Insurance and ______ in rural sector.
a) Motor Insurance
b) General Insurance
c) Reinsurance
d) Property Insurance
11. CFT stands for ______.
a) Coalition for Terrorism
b) Coalition Financing for Terrorism
c) Countering for Terrorism
d) Countering Financing for Terrorism
12. Maximum fee for assignment request is ______.
a) Rs 1
b) Rs 5
c) Rs 100
d) Rs 500
13. Minimum cover (RP, below 45 years) is ______.
a) 2.5× AP or Rs 150000 (lower)
b) 7.5× AP or Rs 25000 (higher)
c) 5× AP or Rs 100000 (higher)
d) 2× AP or Rs 75000 (higher)
14. Penal interest for delay in claim is ______.
a) Bank rate +1%
b) Bank rate +2%
c) Bank rate +3%
d) Bank rate +4%
15. Maximum reinsurance premium with one foreign insurer is ______.
a) 10%
b) 15%
c) 20%
d) 25%
16. Minimum policy term is ______ years.
a) 1
b) 2
c) 3
d) 5
17. Which transaction is suspicious?
a) Large cash premium payment
b) Third-party cheque
c) Non-disclosure of data
d) All of the above
18. Proposal decision must be conveyed within ______ days.
a) 7
b) 15
c) 30
d) 45
19. Negotiated settlements are done by ______.
a) Lok Adalats
b) Jald Rahat Yojana
c) Claims Conciliation Committees
d) All of the above
20. Ability to meet claims is assessed by ______.
a) Price Earning Ratio
b) Profitability
c) Share Capital
d) Solvency Ratio
