Question

What are the main purposes of the 'File and Use' system in insurance regulation?

a.

To ensure rapid introduction of products and maximize profits

b.

To guarantee that products benefit the common man and ensure insurer solvency

c.

To minimize innovation and restrict insurer freedom

d.

To encourage technical analysis by regulators

Answer: (b).To guarantee that products benefit the common man and ensure insurer solvency Explanation:The main purposes of the 'File and Use' system in insurance regulation are to ensure that products benefit the common man and attract buyers while ensuring insurer solvency.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What are the main purposes of the 'File and Use' system in insurance regulation?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What distinguishes the 'Use and File' system from the 'File and Use' system?

Q. What role does the regulator play in the 'Use and File' system?

Q. What distinguishes the 'Free' system from other regulatory systems?

Q. What is the underlying philosophy behind the 'Free' system?

Q. What is the purpose of the minimum death benefit provision in Indian insurance regulations?

Q. How do Indian insurance regulations impact the policy term and premium paying term of insurance products?

Q. What is the purpose of regulating commissions or remuneration in Indian insurance regulations?

Q. How are surrender values calculated according to Indian insurance regulations?

Q. What is the condition for collecting advance premium according to the regulations?

Q. What is the characteristic of level premiums as per the regulations?

Q. What is the treatment of additional payments made on an ad hoc basis according to the regulations?

Q. What is prohibited concerning product names under the regulations?

Q. What information must be clearly indicated regarding benefits offered on maturity, according to the regulations?

Q. What criteria determine whether a product can be classified as a savings product according to the regulations?

Q. How are innovative products treated if they have not yet been approved by the Authority?

Q. What concerns do policyholders typically have regarding insurance contracts?

Q. What type of education do policyholders expect before and after purchasing insurance contracts?

Q. How do distributors earn remuneration in the insurance business?

Q. What ethical aspect of business do distributors need to adhere to when selling insurance products?

Q. What role do insurers' associations play in the insurance industry?

Recommended Subjects

Are you eager to expand your knowledge beyond IC 92 Actuarial Aspects of Product Development? 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!