📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    Question

    Under the insurance Act every insurer and re-insurer is

    required to maintain at all times an excess of value of assets over the amount of liabilities of, __________as stated under section 6 and arrived at in the manner specified by the regulations
    A Not less than fifty per cent of the amount of minimum capital Correct Answer Incorrect Answer
    B Not less than fifty-one per cent of the amount of minimum capital Correct Answer Incorrect Answer
    C Not less than seventy-five per cent of the amount of minimum capital Correct Answer Incorrect Answer
    D Not less than fifty-five per cent of the amount of minimum capital Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Section 64VA. Sufficiency of assets--(1) Every insurer and re-insurer shall 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.

    Practice Next
    More Administrative Interpretation and Maxims Questions
    ask-question
    9