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

The Executive Committee of the General Insurance Council wants to advise the Authority on limits for general insurers' commission and other expenses. Which function under section 64L(1) covers this?

Section 64L(1)(b) covers it: the Committee renders advice to the Authority on controlling general insurers' commission and other expenses. It merely advises, and the Authority, not the Committee, fixes any binding limits.

  1. AAdvising the Authority in controlling expenses of general insurers, including commissionCorrect
  2. BAiding insurers on setting standards of conduct and sound practice
  3. CFixing the commission rates binding on all insurers
  4. DAppointing the Secretary of the Committee

Explanation

Section 64L(1)(b) empowers the Committee to render advice to the Authority on controlling insurers' commission and other expenses. It only advises; the Authority fixes limits. Clause (a) concerns conduct standards and service, not expenses.

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