Question

What type of contracts are categorized under 'Permanent health' subclass of long term business?

a.

Contracts for property insurance

b.

Contracts for granting annuities

c.

Contracts providing benefits on incapacity from accident or sickness for a period of more than five years

d.

Contracts providing benefits on death

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Contracts providing benefits on incapacity from accident or sickness for a period of more than five years Explanation:'Permanent health' contracts provide specified benefits on incapacity from accident or sickness for a period of more than five years and cannot be cancelled by the insurer.

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Q. What type of contracts are categorized under 'Permanent health' subclass of long term business?
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