Question

What does withdrawal risk refer to in insurance?

a.

The risk of policyholders withdrawing their policies due to dissatisfaction

b.

The risk of actual experience differing from assumed experience in pricing

c.

The risk of policyholders defaulting on premium payments

d.

The risk of policyholders experiencing financial hardship

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).The risk of actual experience differing from assumed experience in pricing Explanation:Withdrawal risk in insurance refers to the risk of actual experience differing from assumed experience in pricing.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What does withdrawal risk refer to in insurance?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How can term products be designed to mitigate withdrawal risk?

View solution

Q. What is model risk associated with withdrawal risk?

View solution

Q. How do withdrawals impact mortality and expense assumptions in insurance?

View solution

Q. What is the main factor determining the financial significance of withdrawal risk in insurance?

View solution

Q. How can withdrawal risk be primarily controlled in insurance?

View solution

Q. What approach can be used to incentivize agents to promote persistency?

View solution

Q. How can insurance companies encourage regular premium payments?

View solution

Q. Which statement accurately describes persistency in life insurance policies?

View solution

Q. How are withdrawal rates related to persistency rates?

View solution

Q. What impact do withdrawal rates have on profits in insurance?

View solution

Q. What is withdrawal risk in insurance?

View solution

Q. How is withdrawal risk mainly controlled in insurance?

View solution

Q. If actual profits from withdrawal are more than the expected profit without withdrawals, then this policy will impact profit…..

View solution

Q. Which of the following is a factor to determine the rate of withdrawal?

View solution

Q. Credibility analysis is never used for the calculation of withdrawal rates:

View solution

Q. Which of the following is not dependent on withdrawal rates?

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!

Highway Engineering

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

UIDAI Aadhaar Supervisor Certification

Prepare for the UIDAI Aadhaar Supervisor Certification with our specialized category....

Data Interpretation

Master the art of data analysis and interpretation with our Data Interpretation...

Heat Transfer

Explore the fascinating world of heat transfer with our Heat Transfer category....

IC22 Life Insurance Underwriting

Prepare for success in the Insurance Institute of India (III) examination with IC22...

General Knowledge

Expand your horizons and stay informed about the world with our General Knowledge...

Avionics Engineering

Soar into the world of aviation technology with our Avionics Engineering category....

Renewable Energy

Explore the sustainable future of energy with our Renewable Energy category. Dive...

Total Quality Management

Enhance your understanding of quality management with our Total Quality Management...