IC24 Mock Test Sample 8
These questions cover key legal and insurance concepts such as surplus distribution, solvency requirements, IRDA composition, and contract competency. Policyholders must receive a major share of surplus, ensuring fairness. Concepts like estoppel, equity, and insurable interest define legal relationships in insurance. MWP Act policies protect beneficiaries from creditors. Government funding comes from taxes, dividends, and borrowings. Section 80C provides tax benefits for investments. Legal sources include historical roots like Roman law. Cyber laws penalize hacking and data tampering. Constitutional provisions divide legislative powers. Overall, these principles ensure transparency, accountability, and protection of policyholders and stakeholders within financial and legal systems.
1. If any surplus emerges, _______ shall be allocated to policyholders.
a) 75%
b) 80%
c) 85%
d) 90%
2. Which of the following is correct about Estoppel?
a) Voluntary relinquishment of a known right
b) Associated with tort liability
c) Based on consent
d) None of these
3. Equity means fairness and good conscience.
a) True
b) False
4. Insurance company is not required to maintain solvency margin.
a) True
b) False
5. Every financial year is both previous year and assessment year.
a) True
b) False
6. Which statement is FALSE regarding MWP Act policies?
a) Free from court attachment
b) Cannot be amended or surrendered
c) Must be on own life
d) Nomination and assignment allowed
7. Composition of IRDA includes:
a) Only Chairperson
b) Chairperson + max 4 whole-time members
c) Chairperson + max 5 whole-time + max 4 part-time members
d) Chairperson + max 4 whole-time members
8. Who is not competent to contract?
a) Not disqualified person
b) Person of sound mind
c) Minor
d) All are competent
9. An ______ guilty of misconduct loses remuneration.
a) Principal
b) Agent
c) Customer
d) None
10. Minimum surplus allocated to policyholders:
a) 75%
b) 85%
c) 90%
d) 100%
11. Appeal deposit under State Commission is 50% or ______ whichever is less.
a) Rs. 25,000
b) Rs. 35,000
c) Rs. 50,000
d) Rs. 1,00,000
12. Main sources of government funds include:
a) Taxes
b) Dividend
c) Market borrowing
d) All of the above
13. Roman law-based rules fall under:
a) Formal source
b) Historical source
c) Legal source
d) Literary source
14. Section requiring prospectus copy for insurer registration:
a) Section 1
b) Section 4
c) Section 6
d) Section 3
15. Maximum deduction under Section 80C:
a) Rs. 1,15,000
b) Rs. 1,50,000
c) Rs. 1,25,000
d) Rs. 2,50,000
16. Sections 65–78 penalties include:
a) Tampering with source documents
b) Hacking
c) Non-compliance with Controller
d) All of the above
17. Bank’s insurable interest in car loan:
a) Full loan amount
b) 50% of loan
c) Only interest
d) No interest
18. Renewal application must be submitted ______ before expiry.
a) 30 days
b) 45 days
c) 50 days
d) 60 days
19. Parliament and State both can legislate under:
a) Union List
b) State List
c) Concurrent List
d) Other provisions
20. Certified copy of will by court is called:
a) Executor
b) Administrator
c) Probate
d) Will
