Question

Under the Insurance Act what is the obligation of insurers in relation to reinsurance with Indian re-insurers?

A Insurers are required to re-insure with Indian re-insurers any percentage of the sum assured on each policy, as long as it is mutually agreed upon by both parties
B Insurers may choose whether or not to re-insure with Indian re-insurers, depending on the nature of the insurance policy, without any specific percentage requirements
C Every insurer must re-insure with Indian re-insurers a percentage of the sum assured on each policy as specified by the Authority, which requires prior approval from the Central Government
D Insurers must re-insure with Indian re-insurers the entire sum assured on each policy, as determined solely by the Central Government without needing approval from the Authority
E Insurers are obligated to re-insure with Indian re-insurers only for policies that exceed a certain threshold, with the percentage determined by the Central Government
Practice Next

Relevant for Exams:

Hey! Ask a query