IC 14 - Regulation of Insurance Business Exam Study Notes

Ceiling on business from single client - The business of the insurance broker shall be carried in such a manner that, not more than 50% of the premium (quantum, receipts, etc. as the case may be) in the first year of the business, 40% of the premium in the second year of the business, and 30% of the premium from the third year of business onwards shall emanate from any one client.
Ceiling on business from single client - No corporate agent shall have a portfolio of insurance business from one person or one organization or one group of organizations under which the premium is in excess of 50% of total premium procured in any year.
Ceiling on business from single client - There are no such provisions or limits for individual agents.
Deposit Requirements for Insurance Broker - Every insurance broker shall before the commencement of its business, deposit and keep deposited with any scheduled bank a sum equivalent to 20% of the initial capital in fixed deposit, which shall not be released to the broker unless the prior permission of the Authority is obtained. No such deposit is required to be maintained by corporate agents / individual agents.
Professional Indemnity Insurance - Every insurance broker shall take out and maintain and continue to maintain a professional indemnity insurance cover throughout the validity of the period of the licence granted to him by the Authority, The corporate agent / individual agent need not take the professional indemnity insurance cover.

Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points