Regulatory Frame Work of Insurance

Assignment A

1. What was the purpose of the nationalization of the general insurance business in 1972?
 
 
2.    What were the main recommendations of Malhotra Committee Report 1994 about insurance business?    

3. What are the main functions of IRDAI?    

4.    How the IRDAI regulates the insurance business?    

5.    Discuss the role of Actuaries in insurance

6.    Describe the functions of TPA.    

7.    Discuss the importance of Insurance Ombudsman.    

8.    Briefly discuss the regulations for issuing licence to Insurance Agent.

Assignment B
Case Detail:
Mr. Prasun insured his car under the Motor Car Package Insurance Policy from a public sector insurance company. His car met with an accident. He incurred Rs.1,50,000/- for repairing the accidental car. Surveyor assessed the loss and the insurance company offered him Rs.50,000/- for the final settlement of the claim. Mr. Prasun now has a grievance. You are required to answer the following questions in this regard:

1.    Which grievance redressal machinery/ies he should approach for resolving his issue? 

2.    Whether the insurance company can file an appeal against the award of Insurance Ombudsman? Sustantiate your answer with reasoning. 

3.    Whether Mr. Prasun can engage a practicing advocate to present his case before the Insurance Ombudsman?

Assignment C
Question No.  1    Marks - 10
Principle of Insurable Interest means    
 
Options    
Penal intrest on delayed payment of premium    
Bank charges  on insurance premium remittance    
Interest payable \on insurance money    
Pecuniary interest in the subject matter of insurance

Question No.  2    Marks - 10
Absence of insurable interest in the subject matter will render the insurance contract    
 
Options    
Void    
Voidable    
Valid    
Void Ab-Initio

Question No.  3    Marks - 10
Principle of utmost good faith means    
 
Options    
Buyer should be careful    
Proposer cannot mislead the insurer    
Both proposer and insurer must disclose the material facts    
Seller cannot mislead the buyer    

Question No.  4    Marks - 10
Material facts means    
 
Options    
Disclosing facts at the material time    
Facts about the raw material to be supplied    
Facts which are not required to be known by the insurer    
Facts which enable the insurers to take underwriting decision

Question No.  5    Marks - 10
Principle of Indemnity is strictly applicable in    
 
Options    
Fire Insurance     
Personal accident insurance    
Valued policy    
Life insurance

Question No.  6    Marks - 10
Principle of contribution is applicable in    
 
Options    
Fire Insurance     
Life insurance    
PA insurance    
All of the above

Question No.  7    Marks - 10
In India who is empowered to regulate the insurance industry?    
 
Options    
Central Legislation    
State Legislation    
State and Central Legislation    
Supreme Court of India

Question No.  8    Marks - 10
Life insurance industry was nationalised in the year:    
 
Options    
1938    
1956    
1972    
1999

Question No.  9    Marks - 10
General insurance industry was nationalised in the year:    
 
Options    
1947    
1951    
1972    
2001

Question No.  10    Marks - 10
There were how many general insurance subsidiary companies under GIC?    
 
Options    
2    
3    
4    
5

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Question No.  11    Marks - 10
Malhotra Committee was constituted in the year:    
 
Options    
1972    
1994    
2001    
2015

Question No.  12    Marks - 10
Which is the National agency of Govt. Of India for regulating the insurance industry in India?    
Options    
LIC of India    
GIC of India    
Ministry of Finance    
IRDA of India

Question No.  13    Marks - 10
Amongst various functions of IRDAI, which is not the one?    
 
Options    
To sell insurance products    
To approve insurance products    
To issue insurance surveyors' licence    
To frame regulations relating to insurance matters

Question No.  14    Marks - 10
TAC's basic function has been to:    
 
Options    
Promote insurance products    
Sell insurance products    
Approve insurance products    
Draft Standard Insurance Policy Formats, Terms& Conditions and prespcribebase premium

Question No.  15    Marks - 10
As per IRDAI Regulations for insurance Agency Licence is issued for:    
 
Options    
Year    Answer is same for all….looks missing
Year    
Year    
Year

Question No.  16    Marks - 10
Authority to issue Insurance Agency Licence is:    
 
Options    
LIC of India    
GIC of India    
IRDAI    
The designated person in the concerned insurance company

Question No.  17    Marks - 10
For which of the following it is mandatory to purchase Professional Indemnity Policy?    
 
Options    
Brokers    
Corporate Agents    
Individual Agent    
All of the above

Question No.  18    Marks - 10
Who is the National reinsurer in India?    
 
Options    
LIC of India    
GIC of India    
Reinsurance Corporation of India    
IRDA of India

Question No.  19    Marks - 10
Which term is related to insurance to serve low-income group people?    
 
Options    
Life Insurance    
PA Insurance    
Micro Insurance    
Hut Insurance

Question No.  20    Marks - 10
For life microinsurance products, what is the minimum number of members comprising a group?    
 
Options    
10    
15    
20    
30

Question No.  21    Marks - 10
Money Laundering refers to     
 
Options    
Conversion of cash into gold    
Conversion of assets into cash    
Transfer of cash from one account to another    
Conversion of illegal money into legitimate money    

Question No.  22    Marks - 10
KYC norms include:    
 
Options    
Obtaining details for proper identification of new customer    
Photograph of the new customer    
Verifying the address of the new customer    
All of the above    

Question No.  23    Marks - 10
What does 'Void ab into' Policy means?    
 
Options    
Policy exists    
The policy does not exist since the beginning    
Risk of the Insurer commences    
Risk of the Insurer is deferred    

Question No.  24    Marks - 10
When 'Nomination' can be made in the insurance policy?    
 
Options    
At the time of effecting the policy or at any time before maturity    
After the lapse of the Policy    
After the maturity of the Policy    
None of these

Question No.  25    Marks - 10
When insurance money is payable to the Nominee?    
 
Options    
At any time during the policy period    
After the maturity of the Policy    
In the event of the death of the life assured    
All of the above

Question No.  26    Marks - 10
Assignment of the Policy is normally done in the event of:    
 
Options    
Taking a loan from a financial institution and Insurance Policy is provided as a collateral security    
The policy is transferred to another person    
The policy is revived after lapsation    
None of these

Question No.  27    Marks - 10
As per Free-Look provision Insured may return the Policy within how many days of receipt of the Policy document.    
 
Options    
10    
15    
20    
30

Question No.  28    Marks - 10
Govt. of India created which machinery for quick disposal of grievance of the Insured?    
 
Options    
Insurance Council    
MACT    
Grievance Redressal Authority    
Insurance Ombudsman

Question No.  29    Marks - 10
In case of delay in payment of a claim, the penal interest has to be paid by the insurance company to the claimant @:    
 
Options    
1% above the prevailing bank rate    
2% above the prevailing bank rate    
3% above the prevailing bank rate    
4% above the prevailing bank rate

Question No.  30    Marks - 10
Which is the legal document setting out terms and conditions of the insurance contract?    
 
Options    
Proposal Form    
Prospectus    
Cover Note    
Policy Bond

Question No.  31    Marks - 10
Who should be appointed for assessing the loss?    
 
Options    
Insurance Surveyor    
Investigator    
Repairer    
None of these

Question No.  32    Marks - 10
In District Consumer Forum disputes in respect of claims upto Rs.......can be entertained:    
 
Options    
5  Lac    
10  Lac    
20 Lac    
100 Lac

Question No.  33    Marks - 10
Insurance Ombudsman is appointed by:    
 
Options    
IRDAI    
Governing Body of Insurance Council    
Ministry of Law    
Supreme Court of India

Question No.  34    Marks - 10
In Insurance accounting IBNR stands for:    
 
Options    
Income Before Net Reported Claims    
Incurred But Not Reviewed Claims    
Investment Before Net Result    
Incurred But Not Reported Claims

Question No.  35    Marks - 10
As per IRDA (Investment) Regulations, an Insurance company can not invest premium income in other than approved securities exceeding:    
 
Options    
25%    
20%    
15%    
10%

Question No.  36    Marks - 10
Reserves for unexpired risk comes under:    
 
Options    
Accounting Reserves    
Technical Reserves    
Unexpired Premium    
Assets Liability Reserves

Question No.  37    Marks - 10
As per IRDA regulations for registration as a Reinsurer company, it must have a minimum paid-up capital of:    
 
Options    
Rs.50 Crore    
Rs.100 Crore    
Rs.200 Crore    
Rs.500 Crore

Question No.  38    Marks - 10
How can one assess, if an insurance company will be able to meet its claim?    
 
Options    
Solvency Ratio    
Profitability of the company    
Share Capital of the company    
Operating Margins of the company

Question No.  39    Marks - 10
Insurance Advertisement shall contain:    
 
Options    
Registered name of the Insurer    
Registered name of the Intermediary    
Licenced Insurance Agent    
All of the above

Question No.  40    Marks - 10
As per IRDAI Regulations, Unfair insurance advertisement means that:    
 
Options    
Fails to clarify the Product as insurance    
Describes benefits that do not match the Policy provisions    
Makes claims beyond the ability of the Policy to deliver    
All of the above