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

Posted under IC 92 Actuarial Aspects of Product Development

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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