Question

    What is the significance of "Section 64 VB" of the

    Insurance Act 1963?
    A It allows insurers to offer insurance without receiving premiums upfront. Correct Answer Incorrect Answer
    B It mandates that insurers must receive premiums before assuming any risk. Correct Answer Incorrect Answer
    C It regulates the use of No Claim Bonuses Correct Answer Incorrect Answer
    D It determines the maximum permissible premium rates Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The correct answer is B. It mandates that insurers must receive premiums before assuming any risk. Section 64VB of the Insurance Act 1963 states that no contract of insurance shall be valid unless the premium or the first installment of the premium has been paid.

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