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CMA Final · Risk Management in Banking and Insurance · Managing Risk in Insurance Business

Under Section 34A of the Insurance Act, 1938, which of the following requires the previous approval of the Authority to have effect?

The appointment, reappointment or termination of appointment of a managing or whole-time director, manager or chief executive officer of an insurer needs the Authority's previous approval under Section 34A; without it the action has no effect, and remuneration-related amendments need approval too.

  1. AAppointment, reappointment or termination of appointment of a managing or whole-time director, manager or chief executive officer of an insurerCorrect
  2. BAppointment of any clerical employee of the insurer
  3. CChange in the insurer's registered office within the same city
  4. DDeclaration of an interim bonus

Explanation

Section 34A(1)(b) states that appointment, reappointment or termination of a managing or whole-time director, manager or chief executive officer has no effect without the Authority's previous approval. The other items are not covered by that provision.

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