Question
Insurance Regulatory and Development Authority of India
(IRDAI) has relaxed norms for surety bonds.The solvency requirement applicable for such products has now been reduced to control the level of _____ from 1.875 times previously prescribed.Solution
  Insurance Regulatory and Development Authority of India (IRDAI) has relaxed norms for surety bonds, a type of insurance policy protecting parties involved in a transaction or contract from potential financial losses due to a breach of contract or other types of non-performance.    The changes are aimed at expanding the surety insurance market by increasing the availability of such products.    The solvency requirement applicable for such products has now been reduced to control the level of 1.5 times from 1.875 times previously prescribed.    Further, the prevailing 30 percent exposure limit applicable on each contract underwritten by an insurer, has also been removed.Â
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