Skip to content

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

Bharat Shield General Insurance Ltd. has been paying unusually high commission and expenses compared with its peers. Under Section 64L, which body is empowered to render advice to the Authority on controlling such commission and other expenses of general insurers?

The Executive Committee of the General Insurance Council advises the Authority on controlling the commission and other expenses of general insurers. This is a statutory function under Section 64L. The Life Insurance Council's committee concerns life insurers and so does not apply to a general insurer.

  1. AThe Executive Committee of the General Insurance CouncilCorrect
  2. BThe Executive Committee of the Life Insurance Council
  3. CThe Board of the insurer's reinsurer
  4. DThe Secretary of the Executive Committee of the Life Insurance Council

Explanation

Section 64L(1)(b) gives the Executive Committee of the General Insurance Council the function of advising the Authority on controlling expenses of general insurers in respect of commission and other expenses. The Life Insurance Council's committee deals with life insurers, so it is wrong here.

Did you get it right without looking?

One question tells you little. A timed set on Functions in Insurance and Compliance related thereto (Part II) shows your real accuracy, how long you take and where you lose marks.

Practise Functions in Insurance and Compliance related thereto (Part II)Free diagnostic mock

More Functions in Insurance and Compliance related thereto (Part II) questions