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

Under section 64M, by when each year must the Executive Committee of the General Insurance Council meet to advise the Authority on limits by which actual expenses of management may exceed the prescribed limits under section 40C?

The Committee must meet at least once before the 31st day of March every year. At that meeting it advises the Authority on the limits by which actual management expenses of the preceding year may exceed the section 40C limits.

  1. AAt least once before 31st March every yearCorrect
  2. BAt least once before 30th September every year
  3. CTwice in every financial year, after 31st March
  4. DOnly when the Authority specially requests

Explanation

Section 64M(1) makes it a duty of the Committee to meet at least once before 31st March each year to advise on the permitted excess over section 40C limits. The other options misstate the timing or make it discretionary.

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