Question

How are future bonuses typically related to the current year's bonus?

a.

Future bonuses are always higher than the current year's bonus.

b.

Future bonuses are always lower than the current year's bonus.

c.

Future bonuses are expected to be at least equal to the current year's bonus.

d.

Future bonuses are unrelated to the current year's bonus.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Future bonuses are expected to be at least equal to the current year's bonus. Explanation:Future bonuses in insurance contracts are typically expected to be at least equal to the current year's bonus, although there is no guarantee.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. How are future bonuses typically related to the current year's bonus?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. What is the main difference between participating and non-participating insurance contracts in terms of premiums?

View solution

Q. Which condition must be met for a policy to be eligible for receiving bonuses?

View solution

Q. Under what circumstance would the condition of keeping the policy in force for a certain period not apply?

View solution

Q. How are vested bonuses typically paid out?

View solution

Q. When are bonuses usually declared?

View solution

Q. What is the guarantee regarding future bonuses in insurance policies?

View solution

Q. What distinguishes unit linked contracts from traditional insurance contracts?

View solution

Q. Which account in a unit linked contract belongs to the policyholder?

View solution

Q. What is the portion of the premium allocated to the unit account referred to as?

View solution

Q. Which expenses are met from the non-unit accounts in unit linked contracts?

View solution

Q. When are surrenders typically allowed in unit linked contracts as per current regulations?

View solution

Q. Which statement accurately describes the purpose of insurance and annuity products?

View solution

Q. What does a term insurance policy cover?

View solution

Q. What benefit does an Endowment Assurance contract provide?

View solution

Q. What is the primary characteristic of an annuity product?

View solution

Q. What are 'Riders' or 'Add-ons' in insurance contracts?

View solution

Q. What option do some contracts provide to policyholders?

View solution

Q. What guarantees do insurers offer on payment of benefits and premiums?

View solution

Q. What do insurance contracts offer in exchange for extra premium?

View solution

Q. Life Insurance Business means ____________________________________.

View solution
View All MCQs on IC 92 Actuarial Aspects of Product Development

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!

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Food Engineering

Explore the fascinating world of Food Engineering with our specialized category....

Dairy Engineering

Dive into the world of Dairy Engineering with our specialized category. Explore the...

Foundation Engineering

Master the principles of Foundation Engineering with our specialized category....

Tissue Engineering

Delve into the cutting-edge field of Tissue Engineering with our specialized...

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

Professional Communication

Hone your communication skills with our Professional Communication category. Enhance...

IC 89 Management Accounting

Boost your preparation for the IC 89 Management Accounting exam with our extensive...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...