Start learning →

UIIC AO Insurance Act 1938 — Investment of Assets — practice questions

Explore 1 free Insurance Act 1938 — Investment of Assets questions in UIIC AO Insurance. Open each question or exercise to read its content, reference answers and available explanation.

Practise Insurance Act 1938 — Investment of Assets with Quill →

Insurance Act 1938 — Investment of Assets questions and exercises with answers

Showing questions 1–1 of 1.

For a GENERAL insurance business under Section 27(2) of the Insurance Act 1938, the insurer must invest in Government securities at least:Read the answer and worked solution →

Worked practice questions

For a GENERAL insurance business under Section 27(2) of the Insurance Act 1938, the insurer must invest in Government securities at least:

  1. 10 % of assets
  2. 20 % of assets
  3. 25 % of assets
  4. 30 % of assets
Show answer and solution

Correct answer: B. 20 % of assets

1. Section 27(2) covers general (non-life) insurance investment norms. 2. It specifies a baseline Govt-securities percentage plus a Govt-or-approved-securities slab. 3. Twenty per cent of the assets must be in Government Securities, plus not less than 10% more in Govt or approved. _Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "In the case of an insurer carrying on general insurance business, twenty per cent. of the assets in Government Securities"_

Open this question →

How to practise

  1. Choose a Insurance Act 1938 — Investment of Assets question and try to work out your answer.
  2. Open the question to check the correct answer and read its worked solution.
  3. Continue in the app for bite-sized lessons, explanations and review with Quill. You can start without creating an account.

More Insurance topics

Insurance IntermediariesInsurance Penetration and DensityInsurance Repository SystemIRDA Brief HistoryComposition of IRDAFinancial EducationFormation of IRDAGrievance Redressal