Question

What is the minimum guaranteed surrender value for policies surrendered during the last two years if the policy term is less than 7 years?

a.

80% of the total premiums paid

b.

85% of the total premiums paid

c.

90% of the total premiums paid

d.

95% of the total premiums paid

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).90% of the total premiums paid Explanation:According to the regulation, the minimum guaranteed surrender value for policies surrendered during the last two years, if the policy term is less than 7 years, is 90% of the total premiums paid less any survival benefits already paid.

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Q. What is the minimum guaranteed surrender value for policies surrendered during the last two years if the policy term is less than 7 years?
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