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!

Biology

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

Waste Water Engineering

Navigate the challenges of wastewater treatment and management with our Waste Water...

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Environmental Biotechnology

Discover the intersection of biology and environmental science with our Environmental...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Non Verbal Reasoning

Enhance your cognitive abilities with our Non-Verbal Reasoning category. Dive into...

Biotechnology

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

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...