Question

What does the Policy Administration Charge represent?

a.

The expenses covered by premium allocation charges and the fund management expenses

b.

The expenses related to premium payment

c.

The expenses other than those covered by premium allocation charges and the fund management expenses

d.

The expenses associated with policy termination

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The expenses other than those covered by premium allocation charges and the fund management expenses Explanation:The Policy Administration Charge represents the expenses other than those covered by premium allocation charges and the fund management expenses. This charge may be expressed as a fixed amount or a percentage of the premium or a percentage of sum assured.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does the Policy Administration Charge represent?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. When is the Surrender Charge or Discontinuance charge levied?

View solution

Q. What is the Switching Charge in unit linked products?

View solution

Q. What does the Mortality/Morbidity charge represent?

View solution

Q. What should the mortality/morbidity charge table reflect?

View solution

Q. What is the purpose of the Rider charge?

View solution

Q. What should the rider charge reflect?

View solution

Q. When is the Partial withdrawal charge levied?

View solution

Q. When is the Miscellaneous charge levied?

View solution

Q. What is the limitation on charges for unit linked products?

View solution

Q. What is the cap on Fund Management Charges for each segregated fund?

View solution

Q. What is the purpose of the Reduction in Yield requirement for linked and variable insurance products?

View solution

Q. What is the maximum allowable net reduction in yield at maturity for policies with a term of more than 10 years?

View solution

Q. What are non-negative claw-back additions in unit linked products?

View solution

Q. How should mortality and morbidity charges be treated in the calculation of net yield?

View solution

Q. What is the basis for calculating the net yield?

View solution

Q. What is the term used for the price paid for buying insurance?

View solution

Q. Which factor should pricing meet for insurance products?

View solution

Q. How can the equation of value for insurance products be expressed?

View solution

Q. What does the cost of benefit in insurance represent?

View solution

Q. What does the cost of expenses in insurance include?

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!

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Engineering Materials

Discover the building blocks of engineering with our Engineering Materials category....

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Financial Management and Financial Markets

Master the world of finance with our Financial Management and Financial Markets...

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...