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

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.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the purpose of the Rider charge?

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What should the rider charge reflect?

Q. When is the Partial withdrawal charge levied?

Q. When is the Miscellaneous charge levied?

Q. What is the limitation on charges for unit linked products?

Q. What is the cap on Fund Management Charges for each segregated fund?

Q. What is the purpose of the Reduction in Yield requirement for linked and variable insurance products?

Q. What is the maximum allowable net reduction in yield at maturity for policies with a term of more than 10 years?

Q. What are non-negative claw-back additions in unit linked products?

Q. How should mortality and morbidity charges be treated in the calculation of net yield?

Q. What is the basis for calculating the net yield?

Q. What is the term used for the price paid for buying insurance?

Q. Which factor should pricing meet for insurance products?

Q. How can the equation of value for insurance products be expressed?

Q. What does the cost of benefit in insurance represent?

Q. What does the cost of expenses in insurance include?

Q. What are the types of premium payment?

Q. How is commission payment usually expressed in insurance?

Q. What influences the pricing of insurance products according to regulations?

Q. What factors do insurers consider while determining the optimum size of a policy?

Q. What do insurers consider while determining the expected volume of business?

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!