New Click here to enroll in UIICL SO Finance and Investment Course

    Register

    Question

    Which of the following accurately describes the structure and operations of the Advisory Committee constituted by the Authority for insurance business?

    A The Advisory Committee is composed of up to five members with special knowledge and experience in insurance, and the Authority, without Central Government approval, determines their term, allowances, procedures, quorum, and filling of vacancies Correct Answer Incorrect Answer
    B The Advisory Committee consists of up to five members with expertise in insurance, with their term, allowances, procedures, quorum, and handling of vacancies determined by regulations set by the Central Government, not the Authority Correct Answer Incorrect Answer
    C The Advisory Committee is formed by the Central Government and is composed of insurance experts whose terms and procedures are set by the Authority, which also handles the filling of any vacancies Correct Answer Incorrect Answer
    D The Authority, with prior approval from the Central Government, constitutes the Advisory Committee of up to five insurance experts, and determines their term, allowances, procedures, quorum, and the manner of filling vacancies through its own regulations Correct Answer Incorrect Answer
    E The Advisory Committee includes a fixed number of members with insurance expertise, with the Authority determining their term and allowances, while procedures and quorum are established by the Central Government. Correct Answer Incorrect Answer

    Solution

    Insurance Act Section 101B.   Advisory Committee: (1) The Authority with the previous approval of the Central Government shall, for the purposes of section 101 A, constitute an Advisory Committee consisting of not more than five persons having special knowledge and experience of the business of insurance. (2) The term of office of, and the allowances payable to, members of the Advisory Committee, the procedure to be followed by, and the quorum necessary for the transaction of business of, the Committee and the manner of filling casual vacancies therein shall be such as may be determined by the regulations made by the Authority.

    Practice Next

    Relevant for Exams: