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

The Insurance Act, 1938 requires a statement of assets and liabilities from every insurer, valued as per Section 64V. Which statement is correct about this requirement?

Assets are valued at a value not exceeding their market or realisable value, and every insurer furnishes a certified statement of assets and liabilities as on 31 March each year, certified by an approved auditor for general insurance or an approved actuary for life insurance.

  1. AThe statement is certified by an approved actuary for general insurance and an approved auditor for life insurance, as on 30 June each year
  2. BAssets may be valued at any value the insurer chooses, provided liabilities are fully valued
  3. CAssets are valued at a value not exceeding their market or realisable value, and the statement is as on 31 March each yearCorrect
  4. DThe statement is furnished only when the Authority calls for it, with no fixed date

Explanation

Section 64V(1) says assets are valued at a value not exceeding market or realisable value, and sub-section (3) requires a statement as on 31 March each year. It is certified by an approved auditor for general insurance and an approved actuary for life insurance, so the first option reverses these.

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