Multiple choice

Which of the following statements is incorrect?

  1. An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission by the insurer.

  2. An agent can only be a trained individual for working for an insurance company.

  3. A bank can also act as a broker for life insurance business.

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

An agent licenced to act as such for an insurer is required to have a licence under Section 42 of the Insurance Act, 1938 for procuring and continuing insurance business against payment of commission by the insurer. Banks can now act as brokers for life insurance businesses. It is not mandatory for an individual to be a trained person to work for an insurance company. Hence, option (2) is the correct answer.

Keep practicing — related questions