Question

What is the guarantee regarding future bonuses in insurance policies?

a.

Future bonuses will always be higher than the current bonus rates.

b.

Future bonuses will be guaranteed at the current bonus rates.

c.

Future bonuses may be higher, lower, or equal to the current bonus rates.

d.

Future bonuses will be equal to the Sum Assured.

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Future bonuses may be higher, lower, or equal to the current bonus rates. Explanation:There is no guarantee that future bonuses will be maintained at the current bonus rates. Future bonuses may be higher, lower, or equal to the current bonus rates depending on various factors.

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