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Under Section 13 of the Insurance Act 1938, every insurer carrying on LIFE insurance business must cause an actuarial investigation into the financial condition of the business:
A{'text': 'Once every five years', 'letter': 'A'}
B{'text': 'Once every three years', 'letter': 'B'}
C{'text': 'Only when called upon by the Authority', 'letter': 'C'}
D{'text': 'Once at least every year', 'letter': 'D'}
Answer & Solution
Correct answer: D. {'text': 'Once at least every year', 'letter': 'D'}
1. Section 13 requires periodic actuarial review for life insurers.
2. The Act sets a minimum frequency for this investigation.
3. Every insurer ... shall, once at least every year cause an investigation to be made by an actuary into the financial condition of the life insurance business.
_Source: Insurance Act 1938 (incorporating amendments till 2021), noc.irdai.gov.in — "Every insurer carrying on life insurance business shall, once at least every year cause an investigation to be made by an actuary into the financial condition of the life insurance business"_