State the correct position out of the following.

A. No licence is actually needed by the agent if he is authorised by the Insurer

B. No agent can do insurance business without a valid licence under sec.42 of the Insurance Act 1938

C. An agent of insurance works for salary in an Insurance company

D. A Director of an Insurance company can be an insurance Agent

Answer: Option B

Solution(By Examveda Team)

No agent can do insurance business without a valid licence under sec.42 of the Insurance Act 1938. The Insurance Act, 1938 is a law originally passed in 1938 in British India to regulate the insurance sector. It provides the broad legal framework within which the industry operates.