Question

Which of the following is not a characteristic of riders?

a.

The option is valid only if the main contract is valid.

b.

The grant of option could be subject to underwriting requirements.

c.

The option cannot be cancelled when the main contract is in force

d.

It provides additional benefit only on the happening of a specified event

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The option cannot be cancelled when the main contract is in force Explanation:The option cannot be cancelled when the main contract is in force is incorrect. The option can be cancelled only when the main contract is in force.

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