Question

What is the minimum capital requirement for a direct broker, reinsurance broker, and composite broker?

a.

Direct broker: 50 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 250 lakhs

b.

Direct broker: 200 lakhs, Reinsurance broker: 50 lakhs, Composite broker: 250 lakhs

c.

Direct broker: 250 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 50 lakhs

d.

No minimum capital requirement for any type of broker

Answer: (a).Direct broker: 50 lakhs, Reinsurance broker: 200 lakhs, Composite broker: 250 lakhs Explanation:The minimum capital requirement for a direct broker is 50 lakhs, for a reinsurance broker is 200 lakhs, and for a composite broker is 250 lakhs.

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Q. What is the minimum capital requirement for a direct broker, reinsurance broker, and composite broker?

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