CMA Final · Risk Management in Banking and Insurance · Introduction to Insurance Business
Under Section 32B of the Insurance Act, 1938, every insurer must undertake a specified percentage of life and general insurance business in which areas?
Section 32B of the Insurance Act, 1938 obliges every insurer to undertake specified percentages of life and general insurance business in the rural and social sectors. The Authority specifies these percentages by notification in the Official Gazette, so the other sector pairs are incorrect.
- ARural and social sectorsCorrect
- BExport and import sectors
- CMetropolitan and urban sectors
- DPublic and private sectors
Explanation
Section 32B requires every insurer to undertake percentages of life and general insurance business in the rural and social sectors, as specified by the Authority in the Official Gazette. The other options are not the sectors named in the section.
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