Question

What is the aim when determining withdrawal rates?

a.

To maximize shareholder profits

b.

To minimize policyholder benefits

c.

To meet the shareholders' objective while being conservative

d.

To ensure the policy remains in force without lapsing

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).To meet the shareholders' objective while being conservative Explanation:The aim when determining withdrawal rates is to meet the shareholders' objective while being conservative in the estimation process.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the aim when determining withdrawal rates?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

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

View solution

Q. How does past experience influence withdrawal rates?

View solution

Q. How does premium frequency affect withdrawal rates?

View solution

Q. How does the general economic situation impact withdrawal rates?

View solution

Q. In the scenario of economic deterioration, how does regular premium term insurance typically fare?

View solution

Q. How does economic deterioration impact single premium savings policies?

View solution

Q. What effect does economic downturn have on regular premium endowment assurance policies?

View solution

Q. How does the initiation of sales impact withdrawal rates?

View solution

Q. Which factor is likely to result in higher withdrawal rates?

View solution

Q. How does the target market affect withdrawal rates?

View solution

Q. What role does financial knowledge play in withdrawal rates?

View solution

Q. How does rural vs. urban residence affect withdrawal rates?

View solution

Q. How does the sales initiation impact withdrawal rates?

View solution

Q. What effect does the availability of different premium payment modes have on withdrawal rates?

View solution

Q. How does the competitive situation of the product affect withdrawal rates?

View solution

Q. What is the first step in deriving assumptions for withdrawal rates?

View solution

Q. Why is the time period for data collection important in withdrawal experience analysis?

View solution

Q. What is the recommended time frame for persistency analysis?

View solution

Q. Which data source is typically the best for withdrawal experience analysis?

View solution

Q. Which factors are typically considered in the grouping of data for withdrawal experience analysis?

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!

Electronics and Communication Engineering

Explore the dynamic field of Electronics and Communication Engineering with our...

Human Anatomy and Physiology

Embark on a journey through the human body with our Human Anatomy and Physiology...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Biochemistry

Delve into the intricate world of Biochemistry with our Biochemistry category....

Irrigation Engineering

Master the science of Irrigation Engineering with our dedicated category. Explore...

Mechatronics

Enter the world of integrated engineering systems with our Mechatronics category....

Highway Engineering

Navigate the road to efficient transportation with our Highway Engineering category....

IC 14 Regulations of Insurance Business

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

Chemistry

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