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    Question

    What conditions must be met for the Authority to grant a

    certificate of registration to an applicant to operate as an insurer under the Insurance Act?
    A The applicant must have a large workforce and a strong marketing strategy in place Correct Answer Incorrect Answer
    B The Authority must be satisfied that the financial condition and general character of management of the applicant are sound, the business volume and capital structure are adequate, the public interest will be served, and all applicable legal provisions have been complied with Correct Answer Incorrect Answer
    C The applicant must have a high volume of existing insurance business and a long history in the market Correct Answer Incorrect Answer
    D The applicant only needs to show a good credit rating and submit an application form to the Authority Correct Answer Incorrect Answer
    E The Authority must only be satisfied with the financial condition of the applicant, without any other considerations Correct Answer Incorrect Answer

    Solution

    Section 3 Registration: (2A) If, on receipt of an application for registration and after making such inquiry as he deems fit, the  Authority is satisfied that— (a) the financial condition and the general character of management of the applicant are sound; (b) the volume of business likely to be available to, and the capital structure and earning prospects of, the applicant will be adequate; (c) the interests of the general public will be served if the certificate of registration is granted to the applicant in respect of the class or classes of insurance business specified in the application; and (d) the applicant has complied with the provisions of sections 2C, 5 and 31A and has fulfilled all the requirements of this section applicable to him, the Authority may register the applicant as an insurer and grant him a certificate of registration.

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