Question

Which events should be excluded from the calculation of withdrawal rates?

a.

Surrenders and lapses

b.

Deaths and maturities

c.

Premium payments and policy renewals

d.

Policy modifications and claims settlements

Answer: (b).Deaths and maturities Explanation:Deaths and maturities should be excluded from the calculation of withdrawal rates, if material, as they are not voluntary withdrawals from the policy.

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Q. Which events should be excluded from the calculation of withdrawal rates?

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