Who must be informed by BASE Life Co when unit pricing error is not resolved within the maximum period?

• A. Central Bank
• B. Policyholders
• C. Auditor
• D. Insurance Regulator

Answer: (A)

When a unit pricing error cannot be resolved within the maximum period, the supervisor of the institution must be alerted. In this framework, the Central Bank acts as the primary regulator overseeing life insurers, monitoring solvency, risk management, and consumer protection. Informing the Central Bank ensures proper supervisory action can be taken, the issue is formally tracked, and any necessary corrective measures or disclosures can be mandated to protect policyholders and maintain market integrity. Policyholders will receive required disclosures through standard channels, but they are not the formal recipient of regulatory notifications. The auditor’s role is to provide independent assurance and report findings, not to serve as the official notification point for regulatory matters.