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

Sunrise General Insurance Ltd is a member of the General Insurance Council. Its Chief Underwriting Officer, not a director, is sent to attend a Council meeting on its behalf. Under the Insurance Act, 1938, what is the position?

A member may lawfully authorise any of its officers to act as its representative at a meeting of the Council concerned. The Act imposes no requirement that the person be a director or that the Authority approve the choice beforehand.

  1. AThe officer cannot attend because only directors may represent a member
  2. BThe officer may attend only if the Authority gives prior approval in writing
  3. CThe officer may attend only as an observer without any representation rights
  4. DThe member may lawfully authorise any of its officers to act as its representative at the meetingCorrect

Explanation

Section 64D says it is lawful for any member of the Life Insurance Council or General Insurance Council to authorise any of its officers to act as its representative at a Council meeting. No director-only limit or prior approval of the Authority is required. The distractors add conditions that the section does not contain.

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