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    Question

    What is the minimum amount of unexpired risk reserve

    mandated by the Executive Committee of the General Insurance Council for Other Insurance?
    A 10% of premium Correct Answer Incorrect Answer
    B 25% of premium Correct Answer Incorrect Answer
    C 50% of premium Correct Answer Incorrect Answer
    D 75% of premium Correct Answer Incorrect Answer
    E 100% of premium Correct Answer Incorrect Answer

    Solution

    For Other Insurance, as per the Executive Committee of the General Insurance Council, the minimum amount of unexpired risk reserve that needs to be retained is 50% of the premium. This implies that insurance companies must keep aside half of the premium they receive for other types of insurance policies to ensure they have sufficient funds to meet future claims and obligations.

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