Question

Why are insurers able to provide relatively low-cost group coverage?

a.

Due to higher expenses incurred in administering group policies

b.

Because group policies have higher underwriting costs

c.

Because the group policyholder handles clerical duties

d.

Because individual policies are more cost-effective for insurers

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Because the group policyholder handles clerical duties Explanation:Insurers can offer low-cost group coverage because the group policyholder often handles many clerical duties, reducing administrative expenses.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why are insurers able to provide relatively low-cost group coverage?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How do expense savings contribute to the affordability of group insurance?

View solution

Q. What aspect of group insurance administration helps in cost reduction?

View solution

Q. Why are sales costs lower for group insurance policies?

View solution

Q. What contributes to the lower underwriting and policy issue costs in group insurance?

View solution

Q. How does group insurance differ from individual insurance in terms of the contract?

View solution

Q. What determines the terms of insurance cover in group insurance?

View solution

Q. What document defines the terms and conditions of a group insurance contract?

View solution

Q. What is the underwriting unit in group insurance?

View solution

Q. What factor determines the amount of cover in group insurance?

View solution

Q. How are premium rates adjusted in group insurance schemes?

View solution

Q. What role does the group serve in group insurance?

View solution

Q. What is a crucial requirement regarding the formation of the group for group insurance?

View solution

Q. Why is a steady stream of new entrants important for a group insurance scheme?

View solution

Q. What purpose does the requirement of a large proportion of eligible persons joining the scheme serve?

View solution

Q. What is a common feature of superannuation schemes?

View solution

Q. What distinguishes savings-linked insurance schemes from other types of contracts?

View solution

Q. What characterizes employer-employee groups in group insurance?

View solution

Q. In a non-contributory scheme for employer-employee groups, what is required of eligible employees?

View solution

Q. What is the purpose of creditor-debtor groups in group insurance?

View solution

Q. Who typically takes out the Master Policy in creditor-debtor groups?

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!

Cytogenetics

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

Surveying

Master the art of land surveying and geomatics with our Surveying category. Explore...

Analytical Instrumentation

Dive into the world of precise measurements with our Analytical Instrumentation...

IC 14 Regulations of Insurance Business

Prepare for the IC 14 Regulations of Insurance Business exam with our focused set of...

Geotechnical Engineering

Dive into the world of Geotechnical Engineering with our dedicated category. Explore...

Human and Cultural Diversity

Explore the rich tapestry of human societies with our Human and Cultural Diversity...

IC 92 Actuarial Aspects of Product Development

Sharpen your understanding of actuarial principles in product development with our...

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Instrumentation Transducers

Master the art of instrumentation and transducers with our specialized category....