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CS Professional · Banking and Insurance - Laws and Practice · Functions in Insurance and Compliance related thereto (Part III)

A general insurer's compliance head asks about the role of the Executive Committee of the General Insurance Council under Section 64L of the Insurance Act, 1938. Which of the following is within its functions?

The Executive Committee of the General Insurance Council advises the Authority on controlling general insurers' expenses, including commission and other expenses, under Section 64L(1)(b). It also aids insurers on standards of conduct and sound practice, but it does not set premium rates, approve surpluses or adjudicate claims.

  1. AFixing the premium rates of all general insurers
  2. BRendering advice to the Authority on controlling insurers' expenses, including commission and other expensesCorrect
  3. CApproving the actuarial valuation surplus of general insurers
  4. DAdjudicating policyholder claims against insurers

Explanation

Section 64L(1)(b) provides that the Executive Committee renders advice to the Authority on controlling the expenses of general insurers in India in the matter of commission and other expenses. It does not fix premium rates, approve valuation surpluses or adjudicate claims.

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