Question

What happens if an insurer exceeds the permissible amount of expenses of management under Section 40 (C)?

a.

The insurer is exempt from any consequences

b.

The insurer is deemed to have contravened the statutory provisions

c.

The insurer is required to pay a fine

d.

The insurer is granted additional benefits

Posted under IC 89 Management Accounting

Answer: (b).The insurer is deemed to have contravened the statutory provisions Explanation:If an insurer exceeds the permissible amount of expenses of management under Section 40 (C), the insurer is deemed to have contravened the statutory provisions.

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Q. What happens if an insurer exceeds the permissible amount of expenses of management under Section 40 (C)?
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