Question

What is a key consideration regarding interest rates in insurance contracts?

a.

Reinvestment risk

b.

Policy surrender rates

c.

Advertising expenses

d.

Actuarial assumptions

Answer: (a).Reinvestment risk Explanation:Reinvestment risk, or the risk of reinvesting cash flows at lower rates in the future, is a key consideration regarding interest rates in insurance contracts.

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Q. What is a key consideration regarding interest rates in insurance contracts?

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