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

The Authority was superseded in a given year and the Central Government appointed a Controller of Insurance. Eight months later the Authority was reconstituted. What is the position of the Controller's appointment under the Act?

The Controller of Insurance holds office only until the Authority is reconstituted. Since the Authority was reconstituted after eight months, the appointment ended then. The Act prescribes no fixed term, such as five years or six months, for this temporary appointment.

  1. AIt continues for a fixed five-year term irrespective of reconstitution
  2. BIt continues until the Central Government chooses to withdraw it, even after reconstitution
  3. CIt lasts only till the Authority is reconstitutedCorrect
  4. DIt lapses automatically after six months of supersession

Explanation

The Controller is appointed only till such time as the Authority is reconstituted. Reconstitution therefore ends the appointment at eight months. The Act fixes no five-year or six-month term.

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