Question

How is the Surrender Charge calculated?

a.

As a fixed amount deducted from the policy fund

b.

As a percentage of the sum assured

c.

As a percentage of the premium

d.

As a percentage of the fund or as a percentage of the annualized premiums

Posted under IC 14 Regulations of Insurance Business

Answer: (d).As a percentage of the fund or as a percentage of the annualized premiums Explanation:The Surrender Charge is usually expressed either as a percentage of the fund or as a percentage of the annualized premiums for regular premium contracts. This charge is levied on the unit fund at the time of surrender of the contract, i.e., pre-mature closure of the policy.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How is the Surrender Charge calculated?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What does the Switching Charge refer to?

View solution

Q. What is the Mortality Charge?

View solution

Q. When is the Rider Premium Charge levied?

View solution

Q. What does the Partial Withdrawal Charge apply to?

View solution

Q. What does the Miscellaneous charge apply to?

View solution

Q. What is emphasized regarding the charges other than premium allocation charge and mortality cost?

View solution

Q. What is the purpose of anti-money laundering guidelines?

View solution

Q. What do Know Your Customer (KYC) norms aim to achieve?

View solution

Q. What is the primary goal of money laundering?

View solution

Q. How do criminals typically launder money?

View solution

Q. Why is the term "money laundering" considered apt?

View solution

Q. What is a common preference of money launderers regarding financial systems?

View solution

Q. What are some common reasons for money laundering?

View solution

Q. Why is the issue of money laundering gaining global attention?

View solution

Q. What are the stages of money laundering?

View solution

Q. What typically happens during the placement stage of money laundering?

View solution

Q. How is illegal money commonly introduced into the financial system during the placement stage of money laundering?

View solution

Q. What is "smurfing" in the contect of money laundering?

View solution

Q. What is the main objective of the layering stage of money laundering?

View solution

Q. What activities may be involved in the integration stage of money laundering?

View solution
View All MCQs on IC 14 Regulations of Insurance Business

Recommended Subjects

Are you eager to expand your knowledge beyond IC 14 Regulations of Insurance Business? 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!

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

Environment Management

Master the art of Environment Management with our specialized category. Explore...

Cell Biology

Delve into the fascinating world of Cell Biology with our specialized category....

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....