Question

Why were the limits on overall charges revisited in the year 2010?

a.

To increase charges for policyholders

b.

To align charges with the discontinuance, lapsation, and surrender behavior of policyholders

c.

To decrease transparency in charge structures

d.

To simplify operational procedures for insurers

Posted under IC 14 Regulations of Insurance Business

Answer: (b).To align charges with the discontinuance, lapsation, and surrender behavior of policyholders Explanation:The limits on overall charges were revisited in 2010 to align charges with the discontinuance, lapsation, and surrender behavior of policyholders.

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Q. Why were the limits on overall charges revisited in the year 2010?
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