New Register Here for NABARD Scholarship Test on Mar 22-23

    Question

    Which of the following statements accurately reflects

    the restrictions imposed on a person acting as an insurance agent for multiple insurers?
    A A person may act as an insurance agent for multiple life insurers, general insurers, health insurers, and other mono-line insurers, provided they disclose their affiliations to each insurer Correct Answer Incorrect Answer
    B A person is permitted to act as an insurance agent for any number of life insurers, general insurers, health insurers, and other mono-line insurers, without any restriction on the number of insurers represented Correct Answer Incorrect Answer
    C A person can act as an insurance agent for only one life insurer, one general insurer, one health insurer, and one of each type of other mono-line insurer, with regulations ensuring no conflict of interest arise Correct Answer Incorrect Answer
    D A person is allowed to act as an insurance agent for multiple insurers in different sectors, as long as they do not represent the same type of insurer Correct Answer Incorrect Answer
    E A person may act as an insurance agent for multiple life insurers, general insurers, health insurers, and other mono-line insurers, provided they pass an additional examination for each type of insurer Correct Answer Incorrect Answer

    Solution

    Section 42.   Appointment of insurance agents: (2) No person shall act as an insurance agent for more than one life insurer, one general insurer, one health insurer and one of each of the other mono-line insurers: Provided that the Authority shall, while framing regulations, ensure that no conflict of interest is allowed to arise for any agent in representing two or more insurers for whom he may be an agent.

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