Question

How is the premium charged in a Group (Term) Insurance Scheme?

a.

It remains constant throughout the term.

b.

It is not charged annually.

c.

It depends on the age distribution of the age group.

d.

It is charged only at the time of joining the group.

Posted under IC 89 Management Accounting

Answer: (c).It depends on the age distribution of the age group. Explanation:Group (Term) Insurance Scheme is usually offered under One Year Renewable Group term assurance plan, and every year on the Annual Renewal date, the insurer charges the premium depending upon the changes in size and age distribution of the age group.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is the premium charged in a Group (Term) Insurance Scheme?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What are examples of add-ons or riders in Group Term Insurance schemes?

View solution

Q. What is the statutory basis for Gratuity payments in India?

View solution

Q. When is an employee eligible for gratuity under the Payments of Gratuity Act, 1972?

View solution

Q. How is Gratuity Liability typically managed by employers?

View solution

Q. What type of Gratuity Insurance Plan do life insurance companies offer to employers?

View solution

Q. How is the rate of interest in a Gratuity Insurance Plan typically structured?

View solution

Q. What does ULIP stand for?

View solution

Q. How is the structure of ULIP similar to that of a mutual fund?

View solution

Q. What are the investment options available in ULIPs?

View solution

Q. What does NAV stand for in the context of ULIPs?

View solution

Q. How is the premium allocated in ULIPs?

View solution

Q. What does IRDA stand for?

View solution

Q. What is the key observation regarding life insurance business from the latest data published by IRDA?

View solution

Q. What trend is observed regarding the life cover sum assured per policy?

View solution

Q. What is the trend in the purchase of life cover and ULIPs?

View solution

Q. What is one of the unique features of ULIPs compared to Mutual Fund Investments?

View solution

Q. What is the lock-in period for tax-saving Mutual Fund schemes?

View solution

Q. What is the lock-in period for ULIPs?

View solution

Q. What is the tax benefit regarding ULIPs?

View solution

Q. What recent directive from IRDA aims to reflect the long-term protection function of ULIP policies?

View solution
View All MCQs on IC 89 Management Accounting

Recommended Subjects

Are you eager to expand your knowledge beyond IC 89 Management Accounting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

International Relations

Navigate the complex world of International Relations with our dedicated category....

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Sociology

Gain insights into human behavior and society with our Sociology category. Explore...

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...