New Upcoming Legal Jobs Free Workshop March 11 at 5 PM. Register here

    Question

    According to the Insurance Act section 27 the term

    assets means________________
    A All the assets of insurer at their carrying value Correct Answer Incorrect Answer
    B All the assets specifically held against any fund which the Authority is satisfied that such fund is regulated by the law of any country outside India Correct Answer Incorrect Answer
    C Both a & b Correct Answer Incorrect Answer
    D Either a or b Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Section 27.   Investment of assets: (2) In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities, a further sum equal to not less than ten per cent. of the assets in Government Securities or other approved securities and the balance in any other investment in accordance with the regulations of the Authority and subject to such limitations, conditions and restrictions as may be specified by the Authority in this regard. Explanation--In this section, the term assets means all the assets of insurer at their carrying value but does not include any assets specifically held against any fund or portion thereof in respect of which the Authority is satisfied that such fund or portion thereof, as the case may be, is regulated by the law of any country outside India or miscellaneous expenditure or in respect of which the Authority is satisfied that it would not be in the interest of the insurer to apply the provisions of this section

    Practice Next