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

Under the Insurance Act, 1938, which of the following is a function of the Executive Committee of the General Insurance Council?

The Executive Committee of the General Insurance Council advises the Authority on controlling the expenses of general insurers, including commission and other expenses. It also aids insurers on conduct standards and flags prejudicial insurers. It has no power to fix premiums, settle claims or appoint the Authority's head.

  1. ATo fix the premium rates that every general insurer must charge
  2. BTo render advice to the Authority on controlling the expenses of general insurers, including commission and other expensesCorrect
  3. CTo appoint the Chairperson of the Insurance Regulatory and Development Authority
  4. DTo settle individual claims of policyholders against insurers

Explanation

The Act lists, among the Executive Committee's functions, rendering advice to the Authority on controlling insurers' expenses, including commission. It does not give the Committee power to fix premiums, appoint the Authority's head or settle individual claims, so the other options are wrong.

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