Question

How does the initiation of sales impact withdrawal rates?

a.

Withdrawal rates are lower if clients initiate the sales themselves

b.

Withdrawal rates are higher if clients initiate the sales themselves

c.

Withdrawal rates remain unaffected by the initiation of sales

d.

Withdrawal rates are higher if sales are initiated by the insurer

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Withdrawal rates are lower if clients initiate the sales themselves Explanation:Withdrawal rates are typically lower when clients themselves initiate the sales process, indicating a higher level of commitment to the policy.

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