Question

How are discontinuance charges capped according to the new regulation?

a.

As a percentage of fund value and premium

b.

Only as an absolute value

c.

Only as a percentage of premium

d.

There is no cap on discontinuance charges

Answer: (a).As a percentage of fund value and premium Explanation:Discontinuance charges are capped as a percentage of fund value and premium and also as an absolute value.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How are discontinuance charges capped according to the new regulation?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What option does a policyholder have when discontinuing a policy?

Q. What is one of the reasons why companies offer higher interest rates on their fixed deposits compared to bank fixed deposits?

Q. What is the significance of a company's strong financial strength and goodwill in the context of fixed deposits?

Q. What is solvency, and how does it relate to the safety of fixed deposits?

Q. Why is due diligence important for investors considering company fixed deposits?

Q. What distinguishes bank deposits from company deposits in terms of guarantees?

Q. What is the main purpose of a mutual fund?

Q. What is the role of unit-holders in a mutual fund?

Q. What risk factors are associated with mutual fund investments?

Q. How have Indian mutual funds been organized?

Q. What is the requirement for the relationship between the fund sponsor, trustees, custodian, and Asset Management Company in a mutual fund?

Q. What are some advantages of mutual funds?

Q. What risk factor is associated with mutual funds and securities investments?

Q. What types of ratios are used for evaluating the performance of mutual funds?

Q. What is the definition of AIF (Alternative Investment Fund)?

Q. What are some types or nature of AIFs?

Q. How can an AIF raise funds?

Q. What is the definition of a venture capital fund?

Q. What is the definition of a venture capital undertaking?

Q. What is the characteristic of Term Insurance plans?

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!