New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    According to the Insurance Act when Administrator for

    management of insurance business may be appointed by the Authority?
    A Insurer carrying on life insurance business is appointed without the approval of the Authority Correct Answer Incorrect Answer
    B Insurer carrying on life insurance business is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies Correct Answer Incorrect Answer
    C Either of the above Correct Answer Incorrect Answer
    D Both (a) and (b) Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Insurer carrying on life insurance business is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies, Explanation: Section 52A When Administrator for management of insurance business may be appointed. --(1) If at any time the Authority has reason to believe that an insurer carrying on life insurance business is acting in a manner likely to be prejudicial to the interests of holders of life insurance policies, it may, after giving such opportunity to the insurer to be heard appoint an Administrator to manage the affairs of the insurer under the direction and control of the Authority.

    Practice Next