Question

What is the purpose of the Rider charge?

a.

To cover the cost of policy administration

b.

To cover the cost of premium allocation

c.

To cover the cost of rider cover, exclusive of expense loadings

d.

To cover the cost of fund management

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To cover the cost of rider cover, exclusive of expense loadings Explanation:The Rider charge is levied separately to cover the cost of rider cover, exclusive of expense loadings. It is applied at the beginning of each policy month from the fund.

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Q. What is the purpose of the Rider charge?
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