Question

What does withdrawal rate refer to in insurance?

a.

The probability of a policyholder paying the premium

b.

The probability of a policy reaching maturity

c.

The probability of a policyholder withdrawing from the policy before maturity

d.

The probability of a policyholder receiving the surrender value

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).The probability of a policyholder withdrawing from the policy before maturity Explanation:Withdrawal rate in insurance refers to the probability that a policyholder withdraws from the policy fully or partially before the maturity date.

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Q. What does withdrawal rate refer to in insurance?
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