GROUP IV

INSURANCE ACT & IRDA

03/12/2007
1. WHAT IS THE COMPOSITION OF IRDA?
a. A Chairperson
b. Not more that five Whole-time Members
c. Not more than four part-time members
d. All the above.
2. What are the reasons by which the central government can remove any Member
of IRDA?
a. Physically or mentally incapable
b. Has been convicted any offence which involves moral turpitude
c. Any time adjudged as insolvent
d. All the above
3. What is the full form IRDA?
a. INSURANCE REGISTRATION & DEVELOPMENT ACT
b. INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY.
c. INSURANCE RURAL AND DEVELOPMENT AGENCY
d. NONE OF THE ABOVE.
4. CHAIRPERSON OF THE AUTHORITY CAN HOLD OFFICE UPTO THE
AGE?
a. 62 YEARS
b. 65 YEARS
c. 60 YEARS
d. NO AGE LIMIT.
5. WHERE IS THE REGISTERED OFFICE OF IRDA LOCATED?
a. KOLKATA
b. BANGALORE
c. MUMBAI
d. HYDERABAD
6. WHAT IS THE REQUIRED PAID-UP CAPITAL TO QUALIFY TO ACT AS
NON-LIFE INSURER IN INDIA?
a. Rs. 40 crore
b. Rs, 100 crore
c. Rs. 35 crore
d. Rs. 75 crore
7. ACCORDING TO IRDA ACT RURAL INSURANCE BUSINESS IN NON-
LIFE IS
a. 2 % in first financial year
b. 3 % in 2nd financial year
c. 5% thereafter
d. all the above
8. ACCORDING TO IRDA REGULATION, SOCIAL SECTOR BUSINESS
MINIMUM REQUIREMENT TO NON-LIFE IS AS UNDER EXCEPT
a. 5000 lives in the first year
b. 7500 lives in 2nd financial year
 c. 10000 lives in 3rd financial year
d. 12000 lives in 4th financial year
9. Who regulates Re-Insurance business in India
a. IRDA
b. GIC
c. Reinsurance Corpn of India
d. Govt. of India.
10. Which one is not the criteria for appointment of Actuaries under IRDA Act
a. A fellow member of the Actuarial Society of India
b. Not over the age of 65 years
c. An appointed Actuary of another Insurer
d. A person who has not committed any breach of professional conduct
11. The required minimum Solvency Ratio as per IRDA Act is
a. 1.00
b. 1.20
c. 1.50
d. none of the above
12. Function of Actuaries is
a. Certification of pricing
b. ensuring of solvency margin
c. ensuring the accuracy & completeness of data
d. all the above
13. Rural sector shall mean any place having population of
a. not more than 5000
b. density not more than 400 per sq. km.
c. At least 75% of the main working population is engaged in agriculture
d. All the above
14. Social Sector excludes
a. un-organised sector
b. informal sector
c. economically vulnerable
d. formal sector
15. Un-organised sector excludes
a. bidi workers
b. handloom and khadi workers
c. gents tailor
d. rickshaw puller
16. Which one shall be considered as an advertisement as per IRDA
a. materials used by an insurance company within its own organization
b. communications with the policy holders other than materials urging them
to purchase, increase modify a policy
c. General announcement sent by a group policy holder to a member of the
eligible group
d. Materials used by an insurance company to distribute to the public.
17. If any insurer fails to maintain the required Solvency Margin, then he shall be
liable to a penalty by IRDA
 a. not exceeding Rs. 5 lac
b. not exceeding Rs.10 lacs
c. not exceeding Rs. 4 lacs
d. no such penalty
18. Compulsory investment by an insurer of its total assets, in Infrastructure and
social sector is
a. not less than 10%
b. not less than 7.5%
c. not less than 5%
d. no such limit
19. An important regulation by IRDA that was made in 2005 in the area of
a. Macro insurance
b. Micro insurance
c. Motor insurance
d. Re-insurance
20. Which is an un-approved investment as per IRDA
a. investment in secured loans
b. investment in secured debt instruments
c. investment in secured bonds
d. investment in short or long term loans with pvt. Ltd. companies.
21. Which one of these is not under the powers of Ombudsman to consider:
a. Delay in settlement of claims.
b. Non-issuance of any insurance document to customers after receipt of
premium.
c. Any dispute with regard to premium paid in terms of the policy.
d. Only total repudiation of claims and not partial claims.
22. Which of the following is not a disqualification for an individual to become an
insurance agent (Sec.42):
a. He is a minor.
b. He is of sound mind.
c. He is a known criminal.
d. His connivance in a fraud is proved
23. As per the IRDA guidelines one of the following is not mentioned as the duty of an
agent:
a. To sell the insurance policy to the public.
b. To pay the premium collected from the insured to the insurer.
c. To claim the remuneration from the insurer for the business procured
from the insured.
d. To disclose the material information about the insured to the insurer.
24. A person having passed tenth standard can be granted an agency license if:
a. He is working in an area having population less than 50,000.
b. He resides in an area where population is less than 5,000.
c. Where the insurance Branch Office is located in an area with population
less than 5,000.
d. None of the above.
25. To work as a Fresh Individual general insurance Agent, number of hours training
required is:
a. 150 hours.
b. 100 hours.
c. 50 hours.
d. 25 hours.
26. Who can cancel an agency license?
a. Branch Manager.
b. Divisional Manager.
c. Designated Person.
d. Authorized Person.
27. The insurance agent shall be obliged NOT to reveal the following:
a. Disclose his license fee to the prospect on demand.
b. Disclose the scale of commission.
c. Disclose his commission income.
d. Requisite information on insurance products.
28. Which of the following is correct as per IRDA regulations about minimum capital
requirement with reference to insurance brokers:
a. i.Direct Broker: Rs50 lakhs; ii.Reinsurance Broker: Rs.100 lakhs;
iii.Composite Broker: Rs.200 lakhs.
b. i.Direct Broker: Rs100 lakhs; ii.Reinsurance Broker: Rs.200 lakhs;
iii.Composite Broker: Rs.250 lakhs.
c. i.Direct Broker: Rs50 lakhs; ii.Reinsurance Broker: Rs.200 lakhs;
iii.Composite Broker: Rs.250 lakhs.
d. None of the above.
29. An Insurance Company can be wound up in the following ways as per the
Insurance Act.1938:
i.Voluntary; ii.By Court; iii.By Central Government; iv.By Shareholders and
Policyholders.
a. i., ii, and iii. only.
b. ii., iii., and iv. only.
c. All of the above.
d. None of the above.
30. A Corporation can be granted license to act as a broker if it has in it’s
employment minimum:
a. One qualified person.
b. Two qualified persons.
c. 50% qualified persons.
d. 100% qualified persons.
31. Unlike an agent the duty of the broker includes:
a. Advising the insured on products.
b. Advising the insured on rates.
c. Assisting in negotiation of claims.
d. Assisting in filling the proposal.
32. The surveyors categorization is not based upon:
a. Professional qualification.
 b. Training undergone.
c. Passing examination of Insurance Institute of India.
d. Experience as a surveyor.
33. The insured demands a copy of the Motor Survey Report. The surveyor:
a. Can not give the report as the same is confidential.
b. A copy of the survey report should be given to the insured.
c. Only the insurer can give a copy of the survey report.
d. Survey report is the property of the insurer and so can not be parted with.
34. For a firm to be eligible for a license to act as surveyor:
a. One director should have requisite qualification.
b. Two directors should have requisite qualification.
c. 50% of directors should have requisite qualification.
d. All directors should have requisite qualification.
35. A composite broker is one:
a. Who arranges insurance both for Life and Non-life insurance.
b. Who arranges insurance for more than one insurance company.
c. Who arranges insurance for his clients with insurance companies and/or
re-insurance for his clients.
d. Who arranges insurance with national as well as international insurers.
36. A Re-insurance broker is one:
a. Who arranges re-insurance for the insured.
b. Who arranges insurance and re-insurance for his clients.
c. Who for a remuneration, arranges re-insurance for direct insurers and re-
insurance companies.
d. Who transacts re-insurance business.
37. The validity period for a license is not 3 years for:
a. Insurance surveyor.
b. Insurance agent.
c. Insurance broker.
d. All of the above.
38. Maximum remuneration for an insurance broker on direct general insurance
business is:
a. 10% of the premium.
b. 17.5% of gross direct business.
c. 17.5% on compulsory business.
d. 12.5% of the premium.
39. The license of a broker can be cancelled if:
a. He has not maintained proper books of accounts.
b. He fails to resolve the complaints of the policyholder.
c. He fails to do advertisement and publicity.
d. He fails to procure minimum Rs.50/- lakhs of premium in an accounting
year.
40. The duty of a surveyor does not include:
a. Advise on loss minimization.
b. Verification and investigation of the circumstances of loss.
c. Declaration of his interest in the subject matter, if any.
d. None of the above.