Question

Under what conditions can an insurer place reinsurance business with a reinsurer without prior approval from the Authority, according to the IRDA (Life Insurance – Reinsurance Regulations) 2000?

a.

It can place business with any reinsurer without approval.

b.

It can place business with any reinsurer if the reinsurer has a credit rating of AAA.

c.

It can place business with any reinsurer only if the reinsurer has a credit rating below BBB.

d.

It can place business with any reinsurer with the prior approval of the Authority.

Answer: (d).It can place business with any reinsurer with the prior approval of the Authority. Explanation:Placement of business with any reinsurer requires the prior approval of the Authority.

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Q. Under what conditions can an insurer place reinsurance business with a reinsurer without prior approval from the Authority, according to the IRDA (Life Insurance – Reinsurance...

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