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CMA Final · Risk Management in Banking and Insurance · General Insurance

A general insurer fails to get one of its elected seats on the Executive Committee of the General Insurance Council filled because the electing members do not elect anyone. Under the Insurance Act, 1938, and considering the related fee provisions, which statement is correct?

When the electing body fails to elect a member of the General Insurance Council's Executive Committee, the Authority may nominate any person to fill the vacancy. The nominee is deemed a member as if duly elected. The Government and the Secretary have no such power.

  1. AThe seat stays vacant until the next election, and the Committee cannot function
  2. BThe Authority may nominate any person to fill the vacancy, who is deemed to be a member as if duly electedCorrect
  3. CThe Central Government must nominate a person to fill the vacancy
  4. DThe Secretary of the Committee fills the vacancy by appointment

Explanation

If a body of persons fails to elect any member, the Authority may nominate any person to fill the vacancy, and that person is deemed duly elected. Neither the Government nor the Secretary has this power, and the Committee is not stalled by the vacancy.

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