Question

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

a.

To increase the difference between gross and net yield

b.

To ensure that gross yield is always higher than net yield

c.

To ensure that net yield is always higher than gross yield

d.

To limit the difference between gross and net yield to specified limits

Answer: (d).To limit the difference between gross and net yield to specified limits Explanation:The Reduction in Yield requirement aims to limit the difference between gross and net yield to specified limits, ensuring transparency and fairness to policyholders. If there is any difference, it will be funded by the company.

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

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