Deck 4: Insurance Law and Regulation in India

Question 1

Select a Reason, for Discharging a Contract, Under Common Law.

A)Frustration
B)Mistake
C)Mis-Representation
D)Concealment

Answer 1

Mis-Representation

Question 2

Label the Document, that is used, to lay-down the Terms of the Insurance Contract, when it is bought. Choose the Most Appropriate Option.

A)Policy
B)Agreement
C)Authorisation
D)Endorsement

Answer 2

Policy

Question 3

Label the Interest, that the Insured has, in the Subject-Matter of Life Assurance. Choose the Most Appropriate Option.

A)Speculative Interest
B)Wager Interest
C)Insurable Interest
D)Indemnity Interest

Answer 3

Insurable Interest

Question 4

How Would You Describe the Agreement between the Insurer and the Insured? Choose the Most Appropriate Option.

A)Interim Agreement
B)Provisional Agreement
C)Constant Agreement
D)Contingent Agreement

Question 5

The Main Difference between Legal Contracts, in General; and Insurance Contracts, is that --.

A)Insurance Contracts are the Contracts of Uberrima Fidei.
B)Insurance Contracts are Legally Enforceable Contracts.
C)Insurance Contracts are Always Profitable.
D)Insurance Contracts are Not Subject to Any Regulation, What-So- Ever.

Question 6

Advise Mr. Rajan, on the Point or Time, when Insurable Interest has to be Present, in Case of Life Assurance.

A)Only at the Time of Taking the Policy.
B)Only at the Time of Making a Claim.
C)At the Time of Taking a Policy, and at the Time of Making a Claim.
D)In Case of Life Assurance, No Insurable Interest is Required.

Question 7

Advise Miss Anita, on the Point or Time, when Insurable Interest has to be Present, in Case of Property-Insurance.

A)Only at the Time of Taking the Policy.
B)Only at the Time of Making a Claim.
C)At the Time of Taking a Policy, and at the Time of Making a Claim.
D)In Case of Property Insurance, No Insurable Interest is Required.

Question 8

Mr. Mahesh takes out an Insurance Policy on His House. He sells His House, After a Couple of Months of taking the Policy. In Case, there is Some Damage to the House, can Mr. Mahesh receive the Claim?

A)Yes, Because, Insurable Interest was Present at the Time of Taking-Out the Policy.
B)Yes, if the Current Owner of the House, allows.
C)Yes, if the Damage is Within One Year of His Selling the House.
D)No, Because, there is No Insurable Interest, Present.

Question 9

Mr. Rajan fell-off a Horse, and land ed in a Puddle. He had to lie in the Puddle for a Long-Time, because, the Fall had broken His Leg, this resulted in Him contracting a Severe Pneumonia. He was treated in a Near-By Hospital, where, He dies, as a Result of Pneumonia. What is the Proximate Cause of Death, in this Case?

A)Pneumonia.
B)Leg-Injury, sustained as a Result of the Fall.
C)Negligence of Doctors.
D)Hospital-Treatment.

Question 10

Mr. Ramesh is Married, and wants to buy a Life Assurance Cover on His Friend's Life. Find Out, if He will be Able to do so.

A)Yes, Mr. Ramesh can buy Life Assurance on His Friend's Life.
B)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, He is Married.
C)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because, there is No Insurable Interest, Present.
D)No, Mr. Ramesh cannot buy Life Assurance on His Friend's Life, because of the Principle of Caveat Emptor.

Question 11

Which One of the Following Bodies, regulates the Insurance Companies in India?

A)Reserve Bank of India (R.B.I.) and Finance Ministry, Together.
B)Securities and Exchange Board of India (S.E.B.I.) and Association of Mutual Funds in India (A.M.F.I.), Together.
C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D)Finance Ministry

Question 12

Who among the Following, are Not Regulated by Insurance Regulatory and Development Authority of India (I.R.D.A.I.)?

A)Third-Party Administrators (T.P.A.s)
B)Insurance Brokers
C)Current Account-Savings Account (C.A.-S.A.) Agents
D)Corporate Agents

Question 13

Which One of the Following Statements, is Correct?

A)The Prime Purpose of Insurance-Regulation, is, To Protect the Policy- Holders' Interests.
B)Regulations, made by Insurance Regulatory and Development Authority of India (I.R.D.A.I.), are, to ensure that, Insurance- Companies should exist, Not as Financially Sound Organisations, but, as Socially Responsible Organisations.
C)Insurance is an Absolutely Legal Contract, in Compliance with the Provisions of Indian Contract Act and Other Laws of the Country.
D)Insurance Regulatory and Development Authority of India (I.R.D.A.I.) regulates the Companies from their Registration on- wards, and monitors All their Major Activities, like, Investments, Accounting, etc.

Question 14

What is the Prime Purpose of Insurance-Regulation? Choose the Most Appropriate Answer.

A)To ensure that, Rural Areas and Weaker Sections of Population gets the Adequate Insurance-Coverage.
B)To ensure that, Insurance Companies generate the Sufficient Profits, so that, they can Survive in the Long- Term.
C)To ensure that, Insurance-Cover is extended to All the Citizens of India.
D)To Protect the Policy- Holders' Interests.

Question 15

Which One of the Following Bodies, can issue the License to work as Individual Agents, in India?

A)Finance Ministry
B)Government of India
C)Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.
D)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)

Question 16

Which One of the Following Bodies, regulates the Capital Market in India?

A)Reserve Bank of India (R.B.I.)
B)Securities and Exchange Board of India (S.E.B.I.)
C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D)Association of Mutual Funds in India (A.M.F.I.)

Question 17

Which One of the Following Bodies regulates the Banks in India?

A)Reserve Bank of India (R.B.I.)
B)Securities and Exchange Board of India (S.E.B.I.)
C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D)Association of Mutual Funds in India (A.M.F.I.)

Question 18

Third-Party Administrators (T.P.A.s) are Regulated, by Which of the Following Bodies?

A)Life Insurance Council and General Insurance Council, Jointly.
B)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
C)Insurance Brokers Association of India
D)Finance Ministry

Question 19

Which One of the Following, is the Basic Insurance Legislation of the Country, that governs Insurance Business in India?

A)Insurance Act, 1938.
B)Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
C)Deposit Insurance and Credit Guarantee Corporation Act, 1961.
D)Public Liability Insurance Act, 1991.

Question 20

Insurance Agents, who hold the Licence to act as Agents for Both: Life Insurer, General Insurer, Health Insurer, and Each of the Two Mono-Line Insurers, are called --.

A)Brokers
B)Corporate Agents
C)Third-Party Administrators (T.P.A.s)
D)Composite Insurance Agents

Question 21

--- was established in the Year: 2000, as an In- Dependent Authority, to Regulate and Develop the Insurance Industry.

A)Reserve Bank of India (R.B.I.)
B)Securities and Exchange Board of India (S.E.B.I.)
C)Insurance Regulatory and Development Authority (I.R.D.A.)
D)Association of Mutual Funds in India (A.M.F.I.)

Question 22

Which One of the Following Bodies, has prescribed the Regulations for Protecting the Interests of Policy- Holders, stipulating the Obligations on Both: Insurers as well as Intermediaries?

A)Life Insurance Council and General Insurance Council, Jointly.
B)Policy-Holders' Association of India (P.A.I.).
C)Insurance Regulatory and Development Authority of India (I.R.D.A.I.)
D)Life Insurance Corporation (L.I.C.) of India and General Insurance Corporation (G.I.C.) of India, Jointly.

Question 23

Which One of the Following Acts, has the Provisions for Monitoring and Control of Operations of Insurance Companies?

A)Insurance Regulatory and Development Authority (I.R.D.A.) Act, 1999.
B)Deposit Insurance and Credit Guarantee Corporation Act, 1961.
C)Public Liability Insurance Act, 1991.
D)Insurance Act, 1938.

Question 24

If Insurance Firm accepts such Applicants, Who are at a Greater Than Normal Risk or are Not Insurable, but conceal or falsify the Information about their Actual Condition or Situation, so that, they get Insurance, then this will be known as --. Choose the Most Appropriate Option.

A)Insurance-Screening
B)Adverse Selection
C)Underwriting-Lapse
D)Proposal Re-View

Question 25

Insurance Act came into Effect, on -----.

A)1st June, 1938
B)1st July, 1938
C)1st June, 1939
D)1st July, 1939