Question

In unit-linked insurance products, what is the most critical influence on profitability?

a.

Mortality assumptions

b.

Expense charges

c.

Investment risk

d.

Policyholder contributions

Answer: (b).Expense charges Explanation:In unit-linked insurance products, the most critical influence on profitability is the adequacy of the expense charges, as investment risk is primarily borne by the policyholder, and mortality risk is relatively small.

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Q. In unit-linked insurance products, what is the most critical influence on profitability?

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