Question

What are 'With profit contracts' in insurance?

a.

Contracts that offer guaranteed benefits only

b.

Contracts that offer bonuses or dividends in addition to guaranteed benefits

c.

Contracts that offer lower premiums in exchange for reduced benefits

d.

Contracts that offer no additional benefits beyond the guaranteed ones

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Contracts that offer bonuses or dividends in addition to guaranteed benefits Explanation:'With profit contracts' in insurance refer to insurance contracts that provide bonuses or dividends in addition to the guaranteed benefits. These contracts allow policyholders to receive a share of profits generated by the insurer, typically in the form of bonuses or dividends.

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Q. What are 'With profit contracts' in insurance?
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