Question

Under the provisions related to reinsurance with Indian re-insurers, which of the following statements is most accurate?

Q: Answer-Under the provisions related to reinsurance with Indian re-insurers, which of the following statemen...

Insurance Act Section 101A Re-insurance with Indian re-insurers 2 For the purposes of sub-section 1, 3the Authority may, by notification in the Official Gazette a specify the percentage of the sum assured on each policy to be re-insured and different percentages may be specified for different classes of insurance Provided that no percentage so specified shall exceed thirty per cent. of the sum assured on such policy and b also specify the proportions in which the said percentage shall be allocated among the Indian re-insurers.

A The Authority may specify a uniform percentage, not exceeding 30% of the sum assured on each policy, to be re-insured with Indian re-insurers, regardless of the class of insurance

B The Authority is empowered to specify the percentage of the sum assured on each policy that must be re-insured with Indian re-insurers, but this percentage cannot exceed 50% for any class of insurance

C The Authority may notify different percentages, up to a maximum of 30% of the sum assured, for reinsurance with Indian re-insurers, and may also determine how this percentage is to be distributed among Indian re-insurers

D The Authority can specify that all policies must be re-insured with Indian re-insurers at a fixed rate of 30% of the sum assured, without any variation across different classes of insurance

E The Authority may impose reinsurance requirements up to 40% of the sum assured, distributed among Indian re-insurers as it deems appropriate.

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Under the provisions related to reinsurance with Indian re-insurers, which of the following statements is most accurate?

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