Insurance & FM Awareness Quiz For LIC AAO Mains 2023-24th February

Q1. Which of the following organizations controls the insurance business in India?
(a) IRDAI
(b) RBI
(c) SEBI
(d) NABARD
(e) EXIM
Q2. Which of the following is the predecessor of the IRDA Act, of 1999?
(a) LIC Act, 1956
(b) Insurance Act, 1938
(c) The Public Liability Insurance Act, 1991
(d) The Marine Insurance Act, 1963
(e) None of the above
Q3. What does ‘R’ stand for in ‘IRDA’?
(a) Regulation
(b) Rate
(c) Regulatory
(d) Research
(e) None of the above
Q4. Where is the headquarter of IRDAI?
(a) Delhi
(b) Mumbai
(c) Lucknow
(d) Hyderabad
(e) Bangalore
Q5. As per section 4 of the IRDA Act, of 1999, what is the maximum number of people appointed as members of authority?
(a) 8
(b) 5
(c) 12
(d) 15
(e) 10
Q6. What is the length of the term of the Chairman?
(a) 5 years, eligible for reappointment but not beyond 65 years of age.
(b) 5 years, not eligible for reappointment.
(c) 4 years, eligible for reappointment but not beyond 65 years of age.
(d) 5 years, eligible for reappointment but not beyond 62 years of age.
(e) 3 years, not eligible for reappointment.
Q7. Which of the following is a ground for removal from office?
(a) Adjudged as an insolvent
(b) Physically or mentally incapable
(c) Convicted of an offense which, in the opinion of the Central Government, involves moral turpitude
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member
(e) All of the above
Q8. Which section of IRDA Act, of 1999 deals with salaries & allowances of members of authority?
(a) 5
(b) 6
(c) 7
(d) 8
(e) 9
Q9. Which section of IRDA Act, of 1999 deals with the Meeting of Authority?
(a) 7
(b) 8
(c) 9
(d) 10
(e) 11
Q10. Which section of IRDA Act, of 1999 deals with the Invalidation of proceedings of Authority?
(a) 15
(b) 14
(c) 13
(d) 12
(e) 11

Solutions

S1.Ans.(A)
Sol. IRDAI controls the insurance business in India.
S2.Ans.(B)
Sol. Insurance Act, 1938 is the predecessor of IRDA Act.
S3.Ans.(C)
Sol. Insurance Regulatory and Development Authority.
S4.Ans.(D)
Sol. IRDAI is headquartered in Hyderabad.
S5.Ans.(E)
Sol. Composition of Authority. —The Authority shall consist of the following members, namely: —
(a) a chairperson;
(b) not more than five whole-time members;
(c) not more than four part-time members,
to be appointed by the Central Government from amongst persons of ability, integrity and standing who have knowledge or experience in life insurance, general insurance, actuarial science, finance, economics, law, accountancy, administration or any other discipline which would, in the opinion of the Central Government, be useful to the Authority:
Provided that the Central Government shall, while appointing the Chairperson and the whole-time members, ensure that at least one person each is a person having knowledge or experience in life insurance, general insurance or actuarial science, respectively.
S6.Ans.(A)
Sol. The Chairperson and every other whole-time member shall hold office for a term of five years from the date on which he enters upon his office and shall be eligible for reappointment:
Provided that no person shall hold office as a Chairperson after he has attained the age of sixty-five years:
Provided further that no person shall hold office as a whole-time member after he has attained the age of sixty-two years.
(2) A part-time member shall hold office for a term not exceeding five years from the date on which he enters upon his office.
S7.Ans.(E)
Sol. Removal from office. — (1) The Central Government may remove from office any member who—
(a) is, or at any time has been, adjudged as insolvent; or
(b) has become physically or mentally incapable of acting as a member; or
(c) has been convicted of any offence which, in the opinion of the Central Government, involves moral turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a member; or
(e) has so abused his position as to render his continuation in office detrimental to the public interest.
(2) No such member shall be removed under clause (d) or clause (e) of sub-section (1) unless he has been given a reasonable opportunity of being heard in the matter.
S8.Ans.(C)
Sol. Section 7 of IRDAI, 1999 deals with the salaries & allowances of members of authority.
S9.Ans.(D)
Sol. Section 10 of IRDAI, 1999 deals with the Meeting of Authority.
S10.Ans.(E)
Sol. Section 11 of IRDAI, 1999 deals with Invalidation of proceedings of Authority.