FDI & FEMA

In which year was the life insurance sector nationalized in India?

• 1947

• 1952

• 1972

• 1956

What was the state of private insurers in the Indian insurance market before 1999?

• Only Indian private insurers operated

• Both Indian and foreign private insurers operated

• Only foreign private insurers operated

• No private insurers operated

Which act laid the foundation for opening up the insurance sector to private players in India?

• Companies Act, 1956

• Insurance Act, 1938

• FEMA Act, 2000

• IRDA Act, 1999

What was the initial FDI cap in the insurance sector when it opened up in 1999?

• 26%

• 49%

• 74%

• 25%

Which foreign insurance companies entered the Indian market after the 26% FDI cap was introduced?

• LIC and GIC

• AIG and Allianz

• Bajaj Allianz and ICICI Lombard

• IRDA and SEBI

What was one positive impact of allowing foreign insurers in the Indian market?

• Decreased competition

• Reduced service standards

• Improved marketing and customer awareness

• Nationalization 

  of the sector

As per the 2021 amendment, who must hold key management positions in insurance companies with increased FDI?

• Non-resident Indians

• Foreign investors

• Resident Indian Citizens

• Portfolio investors

What is the sole purpose of an Indian insurance company under Clause 7A?

• To engage in diversified financial services

• To conduct life insurance, general insurance, reinsurance, or health insurance business

• To provide banking and insurance services

• To manage foreign investment funds

Which global economic crisis raised concerns about foreign influence in the insurance sector?

• Asian Financial Crisis

• Dot-com Bubble

• Eurozone Debt Crisis

• 2008 Sub-prime Crisis

When was the general Insurance Nationalized in India ?