Question

What is the concept of "product suitability" introduced by IRDAI?What factors are considered when determining the suitability of an insurance product for a prospect?

a.

Allowing agents to sell any insurance product to any clientPolicy premium and tenure

b.

Ensuring that clients purchase the most expensive insurance productsInvestment assets and family status

c.

Making insurance intermediaries more accountable and justifying product suitability for a clientAge, income, financial goals, and insurance needs

d.

Forcing clients to buy bundled insurance productsMode of premium payment and riders

Posted under IC38 Life Insurance Agent Exam

Answer: (c).Making insurance intermediaries more accountable and justifying product suitability for a clientAge, income, financial goals, and insurance needs Explanation:"Product suitability" is introduced to make insurance intermediaries more accountable and justify product suitability for a client.Factors like age, income, family status, financial and family goals, investment objectives, insurance portfolio already held, and insurance needs are considered when determining product suitability for a prospect.

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Q. What is the concept of "product suitability" introduced by IRDAI?What factors are considered when determining the suitability of an insurance product for a prospect?
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