Skip to content

CMA Final · Risk Management in Banking and Insurance · Insurance Intermediaries

Regarding the Insurance Advisory Committee under Section 25 of the IRDA Act, 1999, which statement is correct?

The Committee may have not more than twenty-five members excluding ex officio members, and the Chairperson and members of the Authority are its ex officio Chairperson and members. Under Section 25 it only advises the Authority on regulations, and the Authority may establish it by notification.

  1. AIt has not more than twenty-five members excluding ex officio members, and the Authority's Chairperson and members are ex officio membersCorrect
  2. BIt must have exactly fifteen members, all nominated by insurers
  3. CIt makes the regulations itself under section 26
  4. DIt is a statutory body that the Authority is compelled to establish on the Act's commencement

Explanation

Section 25(2) allows not more than twenty-five members excluding ex officio members, and 25(3) makes the Chairperson and members of the Authority ex officio. Its object is to advise on regulations, not make them, and the Authority 'may' establish it.

Did you get it right without looking?

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

Practise Insurance IntermediariesFree diagnostic mock

More Insurance Intermediaries questions