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

Lakshmi General Insurance Ltd's finance head asks which body, under section 64L, advises the Authority on controlling the expenses of general insurers in the matter of commission and other expenses. Which is correct?

The Executive Committee of the General Insurance Council advises the Authority on controlling general insurers' commission and other expenses. This is a function given by section 64L(1)(b), alongside setting standards of sound practice and reporting insurers acting prejudicially to policyholders.

  1. AThe Executive Committee of the General Insurance CouncilCorrect
  2. BThe appointed actuary of each general insurer
  3. CThe Life Insurance Council
  4. DThe insurer's audit committee

Explanation

Section 64L(1)(b) gives the Executive Committee of the General Insurance Council the function of rendering advice to the Authority on controlling expenses of general insurers in respect of commission and other expenses. The appointed actuary and audit committee have no such role under this section.

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