CHAPTER 12

1) _________ means whether the insurer has sufficient resources to satisfy the IRDA that hey are able
to pay all claims at any point in time
Valuation
Amalgamation
Solvency
Constitution
2) Section _________ of insurance act 1938 prohibits form of remuneration for procuring insurance
business
40
40(2)
40(1)
40(3)
3) Section _________ of Insurance act 1938 stipulates the limits on the remuneration by way o
commission to agent
40(1)
40A
40A(1)
40A(1)
4) Section __________ of insurance act 1938 prescribes limits for expenses of management of life
insurance business
40(1)
40A
40B(1)
40A(1)
5) Section ________ of insurance act 1938 prohibits insurance agent from offering any rebate as on
inducement to continue policy
40(1)
41(1)
41(3)
41(2)
6) Section _________ of insurance act 1938 stipulates the conditions for issuing a licence to a person
or company to act as an insurance agent for soliciting or procuring insurance business.
40
41
42
43
7) Insurance license issued by IRDA is valid for ________ years
2
3
4

8) The renewal application and fee should reach the IRDA at least ______ days before the licence
expiry date
20
35
40
30
9) Section __________ of insurance act 1938, no insurance agent can be refused payment of renewal
commission due to him on renewal premium, in respect of life insurance business conducted in India
under the agreement.
41
42
43
44
10) The Life Insurance Corporation Act 1956 was passed on ________
19th June 1956
18th June 1956
17th June 1956

16th June 1956

11) The Life Insurance Corporation was formed on ____________

2nd Sept 1956
1st Sept 1956
3rd Sept 1956

4th Sept 1956

12) The Life Insurance Corporation of India was formed in 1956 with the merger of _____ Indian and
foreign insurers in total
254
235
245
253
13) Section ________ of the LIC Act 1956 gave the LIC an exclusive
31
30
32

33

14) Section ___________ of the IRDA Act 1999 specifies the composition of the IRDA
1
2
3
4
15) Section __________ of the IRDA Act 1999 lays down the duties, powers and functions of the IRDA
13
14
15
16
16) The prevention of Money Laundering Act (PMLA) 2002 came into effect in ______ to control
money laundering activities
2002
2003
2004
2005
17) The Prevention of Money Laundering Act (PMLA) 2002 came into effect from _______
1st June 2005
1st August 2005
1st Sept 2005
1st July 2005
18) Individuals whose identity and source of funds can be easily identified are categorized as
High-risk customers
Low-risk customer
Higher middle risk customer
Middle risk customer
19) Payment of premiums by cash cannot exceed by Rs.
45000
50000

55000

60000

20) Section 6 of the Married Womens Property (MWP) Act ________ provides that a life insurance
policy that has been taken out by a married man on his onw life, for the benefit of his wife and
children
1874
1873
1875
1876
21) _________ is the person who forms the trust
Trustor
Trustee

Life assured

Beneficiary

22) ________ is the person who is responsible for managing the assets
Trustor
Trustee
Life Assured

Beneficiary

23) ___________ is an individual who receives the benefits from the trust
Trustor
Trustee
Life Assured

Beneficiary

24) Who is elegible to get maturity payment under MWP Act policy
Nominee
Legal heir
Life assured

Trustee

25) As per ___________ law two or more beneficiaries are allowed for MWP act policy
Hindu
Sikh
Mohammedian
Jewish
26) __________ act was established to set up and facilitate the institution of insurance Ombudsman in
India
IRDA Act
Agent Regulation Act
LIC Act
Redressal of public Grievances Rules
27) The IRDA (Insurance Advertisement and Disclosures)Regulations 2000 define _______
Commission structure
Insurance advertisement
Insurance premium
Insurance rebate

28) _______ define the manner in which premium can be paid by a policyholder for purchasing an
insurance policy
IRDA Regulations 2000
IRDA Regulations 2001
IRDA Regulations 2002
IRDA Regulations 2003
29) _________ deal with the issue of licensing and other matters related to corporate agents
IRDA Regulations 2000
IRDA Regulations 2001
IRDA Regulations 2002
IRDA Regulations 2003
30) _________ prohibit resident Indians from taking out life/general insurance policies issued by an
insurer outside India.
Foreign Exchange Management Regulations 2000
Foreign Exchange Management Regulations 2001
Foreign Exchange Management Regulations 2002
Foreign Exchange Management Regulations 2003
31) Consumer Protection Act is established in ___________
1685
1986
1987

1988

32) Consumer dispute redressal forums at the district level will hear complaints upto the value of ____
Rs.1500000
Rs.1700000
Rs.1500000
Rs.2200000
33) Consumer dispute redressal forums at the state level will hear complaints up to the value of____
Rs.50 lac
Rs.1 Cr.
Rs.2 Cr.
s.3 Cr.
34) The first statutory mesure to regulate life insurance business in Indian Life Insurance Companies
Act
1911
1912
1913
1914
35) Compliance with the PMLA is applicable to financial institutions coming under the
Banking regulator
Capital market regulator
Insurance regulator
All above