Question

What does Fund Management Charge (FMC) represent?

a.

Expenses covered by premium allocation charges

b.

Charges levied on the value of assets

c.

Charges levied on the premium payment

d.

Charges levied on the sum assured

Posted under IC 14 Regulations of Insurance Business

Answer: (b).Charges levied on the value of assets Explanation:Fund Management Charge (FMC) is a charge levied as a percentage of the value of assets. This charge is adjusted by modifying the Net Asset Value (NAV) and is typically computed on a daily basis.

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Q. What does Fund Management Charge (FMC) represent?
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