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CS Professional · Banking and Insurance - Laws and Practice · Professional Opportunities

Meera Joshi, a company secretary in practice, wants to help retail customers choose life and health policies and be paid a commission by insurers for policies placed. Which intermediary category fits this activity, subject to registration with IRDAI?

Meera would act as an insurance agent (or in a similar distribution role), because soliciting and procuring policies for commission is distribution work. Surveyors, TPAs and auditors perform loss assessment, claim servicing and audit functions and do not earn commission for placing insurance business.

  1. AInsurance agent, who solicits and procures insurance business on commissionCorrect
  2. BSurveyor and loss assessor, who assesses claim losses
  3. CThird party administrator, who processes health claims
  4. DStatutory auditor of an insurer

Explanation

Soliciting and procuring policies for commission is the work of an insurance agent (or a broker or corporate agent if structured so). A surveyor assesses losses, a TPA services health claims, and an auditor audits accounts. None of these earns commission for placing policies.

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