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Advanced Wealth Management Course (IIBF) - Paper 4

Part I: Ch 3: Regulation and Legislation Applicable To Insurance

Q1.

Which was the first statutory measure to regulate the business of insurance?

The Indian Life Assurance Companies Act, 1938

The Indian Life Assurance Companies Act , 1928

The Indian Life Assurance Companies Act, 1912

The Indian Life Assurance Companies Act, 1956

Q2.

Section 2 (5A) defines the ‘chief agent’ as a person who, not being a salaried employee of an insurer.

True

False

Q3.

(I) Section 2(17), being one of the amendments made to the Act in 1950, provides for the registration of chief agents and special agents. (II) Section 42A, defines special agent for life insurance business in similar terms.

Both the statements are correct

Only statement (I) is correct

Only statement (II) is correct

Both the statements are wrong

Q4.

LIC was formed in ____________ with a capital contribution of Rs. 5 crores from the Government of India.

Sept, 1956

Sept, 1938

Oct, 1956

Oct, 1938

Q5.

Which section of the Act provides Central Government guarantees for sums assured and bonuses declared under LIC policies?

Section 38

Section 36

Section 35

Section 37

Q6.

Which section of the Act provides that LIC cannot be terminated by any law relating to the winding up of companies or corporations, unless the Central Government orders and directs it to be so?

Section 42A

Section 38

Section 2(5A)

Section 37

Q7.

Which is correct about the members of the Authority?

a. A Chairperson

b. Not more than five whole-time members

c. Both (a) & (b)

d. Not more than ten part-time members

e. All (a), (b) & (d)

Q8.

Complaints to Ombudsman may be made only when:

The insurer has rejected the complaint

No reply was received within one month of the complaint

Both (a) & (b)

The reply was not satisfactory

All of the above

Q9.

Which section defines an intermediary to include insurance brokers, reinsurance brokrs, insurance consultants, surveyors and loss assessors?

Section 2(17)

Section 2(5A)

Section 2(f)

Section 42A

Q10.

IRDA Act provides for the establishment of an Authority to protect the interests of and secure fair treatment to policy holders.

True

False

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