Question

How does the design of an insurance product affect the expected volume of business?

a.

A complex benefit structure leads to increased sales volumes

b.

Ambiguous product design makes it easier to increase sales

c.

A simple and understandable product design facilitates increased sales

d.

Too many options for bonus payments lead to clear product design

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).A simple and understandable product design facilitates increased sales Explanation:A simple and understandable product design facilitates increased sales. If the design of an insurance product is simple to understand, it is easier for insurers to increase sales, even if the premium rate is highly attractive. Conversely, a complicated benefit structure or commission structure can make it difficult to increase sales.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How does the design of an insurance product affect the expected volume of business?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What impact does the size of population eligible to buy have on insurance sales?

View solution

Q. How does an insurer's past track record in providing services impact sales?

View solution

Q. Which of the following regulations were issued by the regulator in India in the year 2013?

View solution

Q. How are participating products classified in terms of bonus accruals?

View solution

Q. Which of the following is NOT a category under Non-linked variable insurance?

View solution

Q. What is the significance of the regulations regarding product pricing?

View solution

Q. What type of products fall under variable insurance products?

View solution

Q. How are non-linked variable insurance products different from linked variable insurance products?

View solution

Q. What is the minimum frequency for the accrual of additional interest rates or bonus?

View solution

Q. When are bonuses with respect to par products declared?

View solution

Q. What does the policy account value represent in a variable non-linked insurance policy?

View solution

Q. How often is the shadow policy account value maintained?

View solution

Q. What does the shadow policy account value computation involve?

View solution

Q. What is the purpose of maintaining the policy account value?

View solution

Q. What is the minimum death benefit requirement for non-linked individual life insurance products?

View solution

Q. What is the minimum death benefit requirement for other than single premium products?

View solution

Q. When is the provision for minimum sum assured on death not applicable?

View solution

Q. How is the minimum sum assured calculated for linked insurance products?

View solution

Q. How is the policy term (T) determined for whole life products?

View solution

Q. What is the minimum policy term stipulated by regulations for individual products?

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

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!

Human Resource Management

Explore the dynamic field of Human Resource Management (HRM) with our dedicated...

Marketing and Marketing Management

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

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Concrete Technology

Welcome to Concrete Technology, a category that unravels the secrets behind the...

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....