Question

Which of the following is not an example of an ‘Option’?

a.

Changing the ownership of the policy

b.

Changing the mode of payment of premium

c.

Partially surrendering the policy (splitting the policy)

d.

Backdating of policy (at inception of the contract) usually in the same financial year

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Changing the mode of payment of premium Explanation:To change the mode of payment of premium is not an option. Changing the mode of payment is ‘Alteration’, not ‘option’.

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Q. Which of the following is not an example of an ‘Option’?
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