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CMA Final · Risk Management in Banking and Insurance · General Insurance

Under the Insurance Act, 1938, the Executive Committee of the General Insurance Council is required to render advice to the Authority on which matter?

The Executive Committee advises the Authority on controlling the expenses of general insurers carrying on business in India, specifically commission and other expenses. Solvency margins, investment approvals and surveyor appointments are not among its listed advisory functions under the Act.

  1. AControlling the expenses of general insurers in the matter of commission and other expensesCorrect
  2. BFixing the solvency margin of general insurers
  3. CApproving the investment portfolio of each insurer
  4. DAppointing surveyors and loss assessors for insurers

Explanation

Section 64L(1)(b) states that the Executive Committee renders advice to the Authority on controlling insurers' expenses, including commission and other expenses. Solvency margins, investment approval and appointment of surveyors are not listed there.

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