K.S.

G COLLEGE OF ARTS AND SCIENCE DEPARTMENT OF COMMERCE CA

QUESTION BANK OF BANKING AND INSURANCE LAW SECTION-A 1 MARKS 1.The relationship between a banker and a customer is a.that of a debtor and creditor b.that of a creditor and debtor c.primarily that of a debtor and creditor d.Both a and b. 2.The constitute a person as a customer there must be a.frequency of transactions b.a dealing of a banking nature c.some sort of an account d.a single transaction of any nature 3.An order cheque can be converted into a bearer cheque by means of a. sans recourse endorsement b. special endorsement c.blank endorsement d. sans frais endorsement .A cheque which is not crossed is called a.!ncrossed cheque b.open cheque c.order cheque d.bearer cheque ".#$nsurance is a co%operative device to spread caused by a particular risk over a number of persons who are e&posed to it'who agreed to themselves against that risk' said by a.Thomson b.(agee c.)harma d.Tindal *%+roviding certainity to the people is ,,,,,,,,, function of insurance. a.+rimary b. secondaryc.Tertiary d.other -../+0A was passed in the year a.11** b.11-* c.112* d.111* 2.The insurance act 1132 contains ,,,,,,,,, sections. a.133 b.113 c.123 d.133 1.$n $04A' #4# stands for a. demand b. 4evelopment c.4imension d.4irectoratr 13.The number of part time members of $04A is not e&ceeding a.3 b. c." d.* 11.The banker has a statutory obligation to a.5onour customer#s cheque b.e&ercise lien c.mauntaining secrecy of customers account d.honour customers bill 12.The best suited deposit for a trading community a.savings deposit b.fi&ed deposit c.current deposit d.recurring deposit

13..ontracts by lunatics in india are a.always void b.always valid c.always voidable d.none of these 1 .the safest form of crossing is a.general crossing b.specific crossing c.double crossing d.A6c payee crossing 1".)tatutory protection of collecting banker is a.)ection 2" and 131 b.)ection " and * )ection 123 and 133 d.none of these 1*.The most important principle of sound lending is a.safety b.security c.profitability d.none of the above 1-.Banking regulation act is a.11 1 b.11" c.11*2 d.none of the above 12.A bank draft is a a.cheque b.bills of e&change c.+romissory note d.none of these 11.The banker must not disclose the condition of his ,,,,,,, account e&cept on reasonable occasions a.savings b.current c.overdraft d.customer 23.reserve bank has advised the banks to all opening of minor#s accounts with,,,,,,,,, as guardian. a.7ather b.(other c. elder honest d.(eternal male 21.A cheque bearing a date later than that on which it is presented for payment is called,,,,,,,,,, a. endorsement b.crossed cheque c.stated cheque d.post%dated cheque 22. A person who becomes the possessor of the instrument for consideration before iys due date without any doubt is called,,,,,,,,,, a.holder b.holder in value c.holder in due course d.marked cheques 23.who are the beneficiaries of insurance8 a.individual b.business c.society d.all of the above 2 .The biggest insurance agency in india,,,,,,, a.9$. b.:eneral insurance c.7ire insurance d.(arine insurance 2".;hat is the causa pro&ina in insurance8 a.+rinciple b.ob<ective c.meaning d.policy 2*.$ndian marine insurance act was passed in,,,,,,, a.1-13 b.12*3 c.11*3 d.1-*3.

2-.The $04A shall have,,,,,,,, a.A chairman b.five whole time members c.four part time members d.all the above 22.The main ob<ect of the insurance ombudsman scheme is to,,,,,,,,, a. collect the premium b.issued that duplicate policy c.settlement of claim d.appoint an agent True/fal e 21.Amount in fi&ed deposit can be withdrawn at any time. 33..heque is a negotiable instrument. 31..urrent account can be opened in the name minor. 32.mortage charge is created on moveable properties. F!ll !" #$e %la"& 33. 0eceiving deposits and lending money is the ,,,,,, fiunction of the bank. 3 .(oney can be withdrawn any number of times in the case of,,,,account. 3"..ollecting banker may collect cheques either in the capacity of holder for value or agent of the ,,,,,,. 3*.;hen endorser simple signs on the back of the instument is said to be ,,,,,,,, endorsement. 3-.;hen a banker receives articles for safe custody he act as a,,,,,,,. 32.:ive the definition of banker. 31.4efine cheque 3.;ho is customer of a bank8 1.)tate any two characteristics of negotiable instrument. 2.)tate the meaning of insurance 3.4efine 0isk. .;rite any two characteristics of consumer. ".;hy is :$. Act passed8 *.;hat is the mission of $04A8 -.;hat is the organisational structure of $04A8 SECTION-B ' MARKS 1.;rite a note on banker#s lien 2.=&plain the recent trends in banking sector. 3.=numerate the circumstances in which cheque may be dishonoured. .;hat are the precautions to be observed in statutory protection of paying banker8 ".)tate the functions of insurance *..lassify insurance based on nature. -.(ention the purpose of insurance Act'1132. 2.;ho can file a complaint under ./+0A8

1.;rite briefly the organisational structure and management of $04A 13. =&plain briefly the powers of central :overnment in $04A functioning. 11.)tate briefly the general relation between banker and customer. 12.=&plain the recent development of banks. 13.>arrate the types of crossing cheques. 1 .;hat are the effects of material alteration8 1"./ut line the +rinciple of insurance 1*.+oint out the functions of :enaral insurance. 1-.)tate the ob<ects of 9$. Act'11"*. 12.;hy insurance Act.1132 passed8 11.)ummarise the powers of $04A. 23.=&plain the mission if $04A. 21.=&plain the general relationship between banker and customer. 22.5ow are when a banker may disclose information regarding the customer#s account8 23.)tate the legal position regarding entries the bank pass book. 2 .;hat are the duties of collecting banker8 2".4efine crossing.=&plain the essential of general crossing. 2*.4istinguish between cheque and bills of e&change. 2-.=&plain the modern services renderrd by commercial bank. 22.e&plain the characteristics of mortgage. 21.;rite short notes on? i@ travellers cheque ii@ .redit card iii@Teller system 33.;hat are document of title to goods8 :ive e&amples. 31.;hat are the requisits of a valid cheque8 32.=&palin the various types of endorsement. 33.what are the precautions to be taken by paying banker in honouring the customer#s cheques8 3 .4ifferentiate savings account and current account. 3".;hen a banker can disclose the customer#s secrecy of accounts8 3*.;hat are the difference between transfer and negotiation8 3-.;hat are the difference between the holder and holder in due course8 32.;hat type of functions performed by bankers as ann agent of the customer8 31.=&plain the various types of crossing 3.9ist out the importance of life insurance to the society. 1.=&plain the characteristics of life insurance. 2.state the provisions of 9$. Act 11"*. 3.;rite the powers of $04A.

.=&plain the function of :$.. SECTION-C ( Mar& 1.=&plain in detail the functions performed by commercial banks. 2.Bring out the special relationship e&ists between banker and customer. 3.;hat is crossing8 =&plain the essentials of :eneral crossing. .4efine endorsement.=&plain the significance of endorsement. "./utline the broad principles of insurance. *. 4iscuss the impact of >ew economic +olicy on $ndian $nsurance industry. -.=&plain the provisions relating to 9$. Act'11"*. 2.)tate and e&plain the ob<ectives of .onsumer +rotection Act. 1.)ummaries the functions of $04A. 13.;hy is $04A significant8 =&plain. 11.4iscuss the functions of commercial banks. 12.4iscuss the special relationship between banker and customer. 13.;hat is endorsement8 =&plain its types. 1 .!nder what circumstances cheque may be dishonoured8 1"..lassify the insurance with suitable illustration 1*.>arrate the impact of globalisation on india. 1-.)tate and e&palin the provision relating to .onsumer +rotection Act'112*. 12.4iscuss the scope and coverage of :enaral insurance business Act'1132. 11.Analyse the +owers of central government in $04A functioning. 23.=&plain the special relationship between banker and a customer. 21.=&plain the functions of central bank. 22.4escribe the legal position of a banker regarding fi&ed deposits. 23.=&plain the procedure that is followed by bankers while opening current account. 2 .;hat are the differnt types of endorsement8 2".;hen is a banker <ustified in refusing payment of a cheque8 2*.;hat are the principles of sound lending8 2-.;hat are the types of loans and advances8 22.;hat are the different types of letter of credit8 21.)tate the precautions to be taken when discounting bills of e&change. 33.4efine the banker.=&plain the duties of a banker. 31.describe the functions in modern commercial bamks. 32.!nder what circumstances a banker is <ustified in refusing a customers cheque8 33.)tate the condiyions under which the statutory protection is available to the collecting banker. 3 .4iscuss the general principles of insurance. 3".;hat is fire8 ;&plain the features of fire insuranc policy. 3*.=&plain the special provisions relating to the insurance Act 1132.

3-.4escribe the formation of genaral insurance company. =&plain the miscellaneous provisions. 32.;rite short notes onA i@ ob<ectives of $04A ii@ $nsurance ombudsman 31.=&plain the role of central government on $04A functioning. 3.;hat are the statutory protection to a collecting banker8 1.;hat are the rights of a banker8 2.;rite short notes onA i@ 5ypothecation ii@ Bill of lading iii@.redit cards iv@9etter of credit