Question

When are surrender rates applicable in insurance policies?

a.

Only during the initial years of the policy

b.

After the maturity date of the policy

c.

At any specific month during the policy term

d.

For the full year rather than at any specific month

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (d).For the full year rather than at any specific month Explanation:Surrender rates in insurance policies are applicable for the full year rather than at any specific month, especially after the initial years of the policy.

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Q. When are surrender rates applicable in insurance policies?
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