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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

At an IAI Council meeting, a member proposes that the Council's decisions on professional standards be taken without reference to the statute, relying only on custom. The Secretary advises that the Council's authority to frame regulations flows from the governing law. Which description of the relationship between the Council and the Institute's members is most accurate?

The Council is the governing body of the Institute of Actuaries of India. It manages the Institute's affairs and exercises only those powers conferred by the Actuaries Act, 2006 and the regulations, so it cannot act on custom alone.

  1. AThe Council is the governing body of the Institute, managing its affairs and acting within the powers given by the Act and regulationsCorrect
  2. BThe Council is an advisory committee with no power to bind members
  3. CThe Council is a court that decides civil disputes between members and insurers
  4. DThe Council is a regulator of insurers appointed by IRDAI
  5. The Council is a trade union negotiating pay on behalf of actuaries

Explanation

The Council is the Institute's governing body and exercises powers under the Actuaries Act, 2006 and the regulations made under it. It is not an advisory committee, a civil court, an insurance regulator or a union.

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