Skip to content

CS Professional · Banking and Insurance - Laws and Practice · Regulatory Framework in Insurance

Mohan was convicted of cheating and completed his sentence seven years ago. He now seeks appointment as an insurance agent. Under Section 42 of the Insurance Act, 1938, what is the position?

Mohan is disqualified by his cheating conviction, but since at least five years have passed since completing the sentence, the Authority shall ordinarily declare that the conviction ceases to operate as a disqualification. The relief comes by the Authority's declaration, not automatically.

  1. AHe is permanently disqualified with no relief
  2. BHe is disqualified, but as five years have elapsed since the sentence ended, the Authority shall ordinarily declare that the conviction ceases to operate as a disqualificationCorrect
  3. CHe is automatically eligible without any declaration
  4. DHe is eligible only after ten years from the sentence

Explanation

Conviction for cheating is a disqualification under Section 42(3)(c). The proviso says that where at least five years have elapsed since completion of the sentence, the Authority shall ordinarily declare that the conviction ceases to disqualify. A declaration is still needed, so it is not automatic.

Did you get it right without looking?

One question tells you little. A timed set on Regulatory Framework in Insurance shows your real accuracy, how long you take and where you lose marks.

Practise Regulatory Framework in InsuranceFree diagnostic mock

More Regulatory Framework in Insurance questions