Skip to content

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

Nirmal General Insurance Ltd. seeks guidance on adopting sound practices to give policyholders efficient service. Which statement about the Executive Committee of the General Insurance Council is correct?

The Committee may aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholders under section 64L(1)(a). It cannot suspend business, and any ancillary function notified under clause (d) needs the Authority's approval.

  1. AIt may aid and advise general insurers on standards of conduct, sound practice and efficient service to policyholdersCorrect
  2. BIt may only advise life insurers on such matters
  3. CIt must obtain no approval to notify any ancillary function
  4. DIt may enforce standards by suspending the insurer's business

Explanation

Section 64L(1)(a) gives the Committee the function of aiding and advising general insurers on standards of conduct, sound practice and efficient service. Ancillary functions under clause (d) need the Authority's approval before notification, and suspension is not a power given.

Did you get it right without looking?

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

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

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