Question

What is the Premium Allocation Charge in linked insurance products?

a.

A charge levied on policyholders upon policy maturity

b.

A charge applied to fund management

c.

A percentage of the premium appropriated towards charges from the premium received

d.

A charge applied to policy surrender

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).A percentage of the premium appropriated towards charges from the premium received Explanation:The Premium Allocation Charge in linked insurance products is a percentage of the premium appropriated towards charges from the premium received. This charge is levied at the time of receipt of premium.

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Q. What is the Premium Allocation Charge in linked insurance products?
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