IC24 Mock Test Sample 10
These questions focus on FEMA, insurance principles, money laundering, and legal concepts. RBI regulates foreign securities under FEMA. Insurable interest in life insurance exists only at policy inception, unlike general insurance. Money laundering involves stages like placement, layering, and integration. Revival restores lapsed policies. Industrial disputes cover conflicts among employers and employees. Arbitrator decisions are called awards. HLV helps determine insurance needs. LIC operates under statutory powers and was formed through consolidation of insurers. Unfair trade practices involve misleading representations. Legal principles like mistake and insurable interest ensure contract validity. Overall, these concepts strengthen financial regulation, consumer protection, and legal compliance in insurance and economic systems.
1. Section 6(3) of FEMA, 1999 gives power to:
a) IRDA
b) RBI
c) EXIM Bank
d) External Affairs Ministry
2. Insurable interest exists only at the time of taking policy in:
a) Life Insurance
b) Property Insurance
c) Marine Hull Insurance
d) Marine Cargo Insurance
3. Investment in subordinate companies is restricted to ______ of long-term funds.
a) 2%
b) 5%
c) 7%
d) 10%
4. Stage where criminal gets access to money:
a) Accessing
b) Legitimising
c) Layering
d) Integration
5. Reinjection of laundered money into economy is:
a) Placement
b) Layering
c) Integration
d) Smurfing
6. Sections 64 & 65 do not apply in fraudulent concealment cases.
a) True
b) False
7. False representation of services refers to:
a) Fair trade practice
b) Unfair trade practice
c) Legal contract
d) None
8. Mistake in contract may relate to:
a) Nature of transaction
b) Subject matter
c) Person
d) All of the above
9. Bringing lapsed policy back to force is called:
a) Revival
b) Lapsed
c) Sum assured
d) Premium
10. Insurable interest in life insurance operates:
a) Same as marine
b) Same as fire
c) Same as motor
d) Differently
11. Industrial dispute includes:
a) Employer vs employer
b) Employer vs workmen
c) Workmen vs workmen
d) All of the above
12. Arbitrator’s final written decision is called:
a) Award
b) Arbitration
c) Conciliation Act
d) None
13. RBI Memorandum governs:
a) Issue of policies to non-residents
b) Collection of premium
c) Reinsurance
d) All of the above
14. Number of methods to calculate HLV:
a) 1
b) 2
c) 3
d) 4
15. Insurable interest depends on:
a) Proposer’s interest
b) Relationship
c) Legal decisions
d) All of the above
16. Proposal form replies are treated as warranties.
a) True
b) False
17. Complaint must be made within:
a) 30 days
b) 45 days
c) 3 months
d) 1 year
18. Section giving LIC power to conduct business:
a) Section 4
b) Section 5
c) Section 6
d) Section 7
19. LIC formed by merger of:
a) 154, 75, 16
b) 16, 75, 154
c) 154, 16, 75
d) 165, 18, 75
20. Incorrect statement about Child Insurance plans:
a) Contract with parent/guardian
b) Minor gets rights only
c) Transfer creates fresh contract
d) Minor can enter contract
