Question

Why are insurers advised to obtain ratings for their respective unit linked funds?

a.

To increase profits

b.

To make choices difficult for the public

c.

To help policyholders in comparing fund performances

d.

To avoid regulatory scrutiny

Posted under IC 14 Regulations of Insurance Business

Answer: (c).To help policyholders in comparing fund performances Explanation:Insurers are advised to obtain ratings for their unit linked funds to assist policyholders in comparing fund performances. Ratings provide valuable insights for policyholders when making investment decisions in the dynamic market of ULIPs.

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Q. Why are insurers advised to obtain ratings for their respective unit linked funds?
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