Question

What does persistency refer to in the context of life insurance?

a.

The volume of business that a life insurance company acquires

b.

The percentage of insurance policies remaining in force without lapsing or being replaced by policies of other insurers

c.

The frequency of policyholder withdrawals from the unit fund

d.

The number of new policies sold by an insurance agent

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).The percentage of insurance policies remaining in force without lapsing or being replaced by policies of other insurers Explanation:Persistency in life insurance refers to the percentage of insurance policies that remain in force without lapsing or being replaced by policies of other insurers. It indicates the ability of the insurer to retain its policyholders over time.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does persistency refer to in the context of life insurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How is the withdrawal rate related to persistency?

View solution

Q. Which of the following is excluded when calculating withdrawal rates?

View solution

Q. Why is persistency considered an important metric in insurance?

View solution

Q. How do withdrawal rates influence the pricing of insurance products?

View solution

Q. In which approach to pricing are withdrawal rates considered a crucial assumption?

View solution

Q. How do withdrawal rates impact profits in insurance contracts?

View solution

Q. What is the asset share of a life insurance policy?

View solution

Q. How does the excess of asset share over surrender value impact profits?

View solution

Q. What effect do withdrawal terms have on profit margins?

View solution

Q. What does withdrawal rate refer to in insurance?

View solution

Q. When are surrender rates applicable in insurance policies?

View solution

Q. What is the main factor influencing withdrawal rates?

View solution

Q. Which of the following is NOT a factor considered in choosing withdrawal rates?

View solution

Q. How are withdrawal rates assumed for modeling purposes?

View solution

Q. How does an actuary determine the best estimate rate of withdrawal?

View solution

Q. What factors impact the withdrawal rates in insurance?

View solution

Q. When analyzing withdrawal rates, what is considered if the company lacks adequate data?

View solution

Q. What may necessitate adjustments to withdrawal rates?

View solution

Q. What is the aim when determining withdrawal rates?

View solution

Q. How does the type of product influence withdrawal rates?

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!

Surveying

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

Biochemical Engineering

Master the synergy of biology and engineering with our Biochemical Engineering...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Business Statistics

Uncover the power of data analysis with our Business Statistics category. Explore...

Logical Reasoning

Enhance your logical thinking and decision-making abilities with our Logical...

Biology

Dive into the realm of life sciences with our Biology category. Explore the wonders...

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Biotechnology

Discover the cutting-edge world of biotechnology with our Biotechnology category....

Life Sciences

Delve into the diverse world of life sciences with our specialized category. Explore...