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

The Executive Committee of the General Insurance Council is being constituted. The four members elected by the Council's members include Mr. Rao. Which statement about the composition is correct under the Insurance Act, 1938?

The Committee has four elected insurer representatives, one eminent person unconnected with insurance nominated by the Authority, and four Authority-nominated persons representing agents, third party administrators, surveyors and loss assessors, and policyholders. The Chairperson is elected from among the four elected representatives.

  1. AThe Chairperson is nominated by the Authority from the eminent person it nominates
  2. BIt has four elected insurer representatives, one eminent non-insurance person nominated by the Authority, and four nominated persons representing agents, third party administrators, surveyors and loss assessors, and policyholders; the Chairperson is elected from among the four elected representativesCorrect
  3. CIt has six elected insurer representatives and no nominees of the Authority
  4. DThe Chairperson is elected from the four persons nominated to represent agents, TPAs, surveyors and policyholders

Explanation

Section 64F(2) provides four elected representatives, one eminent person unconnected with insurance nominated by the Authority, and four nominated persons for agents, TPAs, surveyors and loss assessors, and policyholders. The proviso says the Chairperson is one of the elected representatives under clause (a).

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