Question

At 31 Mar, management projects a worst-case stress showing net technical provisions plus URR exceed current solvency margin by 10%. Regulator requires prompt remedial plans. Which immediate action is most appropriate while preparing a remediation plan?

A Do nothing—wait for the next reporting period.
B Immediately halt new business until solvency restored.
C Notify regulator, prepare an action plan (capital injection, reinsurance, premium increase), and maintain business under regulator oversight.
D Transfer policy liabilities to a related party at book value.
E Recognise additional deferred tax to offset the deficiency.
Practice Next

Hey! Ask a query

🎓
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
  • 200 Questions with Detailed Solutions
  • Section-wise Coverage (GA, English, Quant & Reasoning)