Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points
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Only insurance brokers are required to maintain an ?Insurance Bank Account? and a professional indemnity insurance cover.
It is mandatory for every life insurer operating in India to have a programme of reinsurance in respect of lives covered by them.
General insurers are allowed to maintain the maximum possible retention commensurate with their financial strength and volume of business. The IRDA has the power to ask a General Insurer to justify its retention policy.
Every general insurer is required to make outstanding claims provision for every reinsurance arrangement accepted on the basis of loss information advices received from Brokers / Cedants. In the cases where such advices are not received, the provisions are created on the basis of actuarial estimations.
Every general insurer is required to make an appropriate provision for Incurred But Not Reported (IBNR) claims on the reinsurance accepted portfolio. This provision is made on actuarial estimation basis.
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