Question

What does allowing appropriation of the cost of riders by cancellation of the units ensure?

a.

Increased profits for the insurer

b.

Continuation of the rider benefits

c.

Decreased costs for the policyholder

d.

Higher returns on investment

Answer: (b).Continuation of the rider benefits Explanation:Allowing appropriation of the cost of riders by cancellation of the units ensures the continuation of the rider benefits. This mechanism helps policyholders maintain their rider benefits even in dynamic market conditions.

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Q. What does allowing appropriation of the cost of riders by cancellation of the units ensure?

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