Question

What is the Switching Charge in unit linked products?

a.

A charge levied on fund management

b.

A charge applied when the policy is surrendered

c.

A charge levied on switching of monies from one fund to another available within the product

d.

A charge applied at the time of policy issuance

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).A charge levied on switching of monies from one fund to another available within the product Explanation:The Switching Charge in unit linked products is a charge levied on switching of monies from one fund to another available within the product. This charge is applied at the time of affecting the switch and can be either a flat amount or a percentage of the fund value.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. What are the types of premium payment?

View solution

Q. How is commission payment usually expressed in insurance?

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!

Bioinformatics

Unlock the power of data analysis in biology with our Bioinformatics category....

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Cognitive Radio

Step into the dynamic world of Cognitive Radio, where wireless communication meets...

IC38 Life Insurance Agent Exam

Prepare for success in the Insurance Institute of India (III) IC38 IRDA examination...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

General Knowledge

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

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Engineering Materials

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

Engineering Geology

Explore the dynamic field of Engineering Geology with our specialized category. Delve...