Question

Which factor is likely to result in higher withdrawal rates?

a.

Need-based selling

b.

Sales initiated by the client

c.

Sales pressure exerted by the insurer

d.

Policies sold with proper information gathering

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (c).Sales pressure exerted by the insurer Explanation:Higher withdrawal rates are typically associated with sales practices involving more sales pressure exerted by the insurer, which may lead to clients purchasing policies they do not truly need.

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