Question

What charges may be levied by the insurer if a linked insurance policy is discontinued?

a.

Surrender charges and premium adjustment fees

b.

Fund management charge and service fees

c.

Only discontinuance charge and Fund management charge

d.

Surrender charge and administration fees

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Only discontinuance charge and Fund management charge Explanation:If a linked insurance policy is discontinued, only discontinuance charge and Fund management charge may be levied by the insurer, according to the regulations.

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Q. What charges may be levied by the insurer if a linked insurance policy is discontinued?
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