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Question

Section 64VA(1) of the Insurance Act specifies a criteria related to sufficiency of assets that every insurer and re-insurer should at all times maintain an excess of assets over liabilities?

A Not less than twenty-five percent of the amount of minimum capital. Correct Answer Incorrect Answer
B Not less than fifty percent of the amount of minimum capital. Correct Answer Incorrect Answer
C Not less than seventy-five percent of the amount of minimum capital. Correct Answer Incorrect Answer
D Not less than ninety percent of the amount of minimum capital. Correct Answer Incorrect Answer
E Not less than one hundred percent of the amount of minimum capital. Correct Answer Incorrect Answer

Solution

Sufficiency of assets [Section 64VA(1)]: Every insurer and re-insurer should at all times maintain an excess of value of assets over the amount of liabilities of, not less than fifty per cent. of the amount of minimum capital as stated under section 6 and arrived at in the manner specified by the regulations.

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