Skip to content

CS Professional · Banking and Insurance - Laws and Practice · General and Health Insurance

Orient Shield General Insurance was heard by the Authority and found to have contravened Section 40C on expenses of management. It was warned. Later it was warned a second time and again disregarded the warning. Under Section 64M, what follows?

Where two warnings given under Section 64M(2) have been disregarded, the Authority may take such action against the insurer as may be prescribed. Cancellation is not automatic, and the warning must first be given after the insurer has been given an opportunity of being heard.

  1. AAfter two warnings are disregarded, the Authority may take such action against the insurer as may be prescribedCorrect
  2. BThe insurer's registration is automatically cancelled on the second warning
  3. CThe General Insurance Council must prosecute the insurer immediately
  4. DNo further action is possible because a warning is the only remedy

Explanation

Section 64M(2) lets the Authority, after giving the insurer an opportunity of being heard, administer a warning. Under 64M(3), where two warnings have been disregarded, the Authority may take such action as may be prescribed. Cancellation is not automatic, and the Council has no prosecuting role here.

Did you get it right without looking?

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

Practise General and Health InsuranceFree diagnostic mock

More General and Health Insurance questions