Skip to content

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

Under section 64M of the Insurance Act, 1938, what is the duty of the Executive Committee of the General Insurance Council in relation to expenses of management of general insurers?

The Committee must meet at least once before 31 March every year to advise the Authority on fixing the limits by which a general insurer's actual expenses of management in the preceding year may exceed the prescribed limits. Warnings are issued by the Authority.

  1. AMeet at least once before 31 March every year to advise the Authority on limits by which actual expenses may exceed the prescribed limitsCorrect
  2. BMeet every quarter to fix commission rates for agents
  3. CMeet once a year before 30 June to administer warnings to insurers
  4. DMeet at least twice a year to approve each insurer's budget

Explanation

Section 64M(1) requires the Committee to meet at least once before 31 March each year to advise the Authority in fixing limits by which the preceding year's actual expenses may exceed those under the proviso to section 40C(1). Warnings are given by the Authority, not the Committee.

Did you get it right without looking?

One question tells you little. A timed set on Functions in Insurance and Compliance related thereto (Part III) shows your real accuracy, how long you take and where you lose marks.

Practise Functions in Insurance and Compliance related thereto (Part III)Free diagnostic mock

More Functions in Insurance and Compliance related thereto (Part III) questions