CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities
A company secretary is engaged as a compliance adviser to a licensed corporate agent. The agent's insurer-wise business this year: Insurer A Rs 60 lakh, Insurer B Rs 40 lakh, with no other insurer. The adviser checks the agent's tie-ups for life insurance. Assuming the agent's current IRDAI framework limits a corporate agent to a stated maximum number of insurers per segment, which advisory step is most appropriate before concluding compliance?
The adviser should check the number of insurer tie-ups in each segment against the current IRDAI regulations and the agent's licence terms. Premium volume or the 60:40 business split does not determine compliance, so ignoring the count or dropping an insurer is unfounded.
- AVerify the agent's tie-ups per segment against the number permitted in the current IRDAI regulations and the licence termsCorrect
- BTreat the combined Rs 1 crore as one tie-up and ignore the insurers' count
- CAdvise the agent to drop Insurer B because the smaller share is illegal
- DConclude compliance because premium volume exceeds Rs 50 lakh
Explanation
Compliance depends on the number of insurers tied per segment as permitted by the current regulations and the licence, not on premium volume or share of business. Business split of 60:40 is not itself a violation, so dropping Insurer B is baseless. Adding volumes does not test the count of tie-ups.
Did you get it right without looking?
One question tells you little. A timed set on Professional Opportunities shows your real accuracy, how long you take and where you lose marks.
More Professional Opportunities questions
- Arjun, a Company Secretary, joins a listed insurer and is asked to serve as a point of contact for IRDAI, handle board meeting procedures an…
- Anita is an actuary at a life insurer. The board of the insurer asks her to wear two hats: certify the adequacy of policy liabilities and al…
- Meera, a Company Secretary, wants to work in an insurance company's compliance function ensuring adherence to IRDAI regulations, filing retu…
- Rohan wants a career valuing life insurance liabilities, setting premium rates using mortality data and certifying the insurer's solvency po…
- Anita Rao, a Company Secretary, is asked by a bank's management to review whether its internal policies, board-approved procedures and RBI d…
- A company secretary, Rahul Nair, wishes to start as a surveyor and loss assessor for general insurance claims. Which statement correctly des…