Question

What does the Mortality/Morbidity charge represent?

a.

The cost of life/health insurance cover

b.

The expenses related to policy administration

c.

The charges levied on policy surrender

d.

The charges applied for premium allocation

Answer: (a).The cost of life/health insurance cover Explanation:The Mortality/Morbidity charge represents the cost of life/health insurance cover. This charge is exclusive of any expense loadings levied by cancellation of units and is levied at the beginning of each policy month from the fund.

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Q. What does the Mortality/Morbidity charge represent?

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