Question

What types of securities are considered approved investments for General Insurance Companies under sec. 27B(1)?

a.

Only loans secured as per the Insurance Act

b.

Only bonds or debentures issued by companies rated not less than AA

c.

Loans secured as per the Insurance Act, rated debentures, equity shares, preference shares, and debt instruments issued by All India Financial Institutions

d.

Only bonds or debentures issued by companies rated below AA

Posted under IC 89 Management Accounting

Answer: (c).Loans secured as per the Insurance Act, rated debentures, equity shares, preference shares, and debt instruments issued by All India Financial Institutions Explanation:Loans secured as per the Insurance Act, rated debentures, equity shares, preference shares, and debt instruments issued by All India Financial Institutions are considered approved investments for General Insurance Companies under sec. 27B(1).

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Q. What types of securities are considered approved investments for General Insurance Companies under sec. 27B(1)?
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