Question

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

a.

The policy must be surrendered.

b.

The policy must be in-force for with profits.

c.

The policy must be issued for a specific term.

d.

The policy must be endorsed by the policyholder.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).The policy must be in-force for with profits. Explanation:Bonuses are typically attached to policies that are in-force for with profits, meaning they are eligible to receive bonuses based on the insurer's profitability.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

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

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

Q. When the sum assured is returned to the policyholder at periodic intervals, it is referred to as ____________.

View solution

Q. Which of the following is not a characteristic of riders?

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!

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Power Plant Engineering

Embark on a journey through the fascinating domain of Power Plant Engineering, where...

Cytogenetics

Delve into the genetic mysteries of chromosomes with our Cytogenetics category....

Foundation Engineering

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

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Textile Engineering

Explore the dynamic world of Textile Engineering with our specialized category. Delve...

Enzyme Technology

Unlock the power of enzymes with our Enzyme Technology category. Explore enzyme...

UIDAI Aadhaar Supervisor Certification

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

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...