New IFSCA Phase 1 Results Out - Enroll Here for Phase 2

    Register

    Question

    What must be done before an application for an amalgamation or transfer scheme is made to the Authority according to the Insurance Act?

    A The application can be made immediately without prior notice to the Authority Correct Answer Incorrect Answer
    B A notice of intention, with a statement of the nature and reason for the scheme, must be sent to the Authority at least two weeks in advance Correct Answer Incorrect Answer
    C A notice of intention and a statement of the nature and reason for the scheme must be sent to the Authority at least two months in advance, with certified copies of relevant documents made available for inspection by members and policyholders Correct Answer Incorrect Answer
    D No notice or documents are required before applying for the scheme Correct Answer Incorrect Answer
    E Only members and policyholders need to be notified without involving the Authority Correct Answer Incorrect Answer

    Solution

    Section 35. Amalgamation and transfer of insurance business: (3) Before an application is made to the Authority to approve any such scheme notices of the intention to make the application together with a statement of the nature of the amalgamation or transfer, as the case may be, and of the reason therefore shall, at least two months before the application is made, be sent to the Authority and certified copies, four in number, of each of the following documents shall be furnished to the Authority, and other such copies shall] during the two months aforesaid be kept open for the inspection of the members and policy-holders at the principal and branch offices and chief agencies of the insurers concerned.

    Practice Next

    Relevant for Exams: