Question

What regulation governs insurance premiums?

a.

Rates can fluctuate over time

b.

Premiums must remain fixed once established

c.

Premiums can only change for certain policies

d.

There are no regulations regarding insurance premiums

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (b).Premiums must remain fixed once established Explanation:Once fixed, insurance premiums cannot change over time to keep the policy in force.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What regulation governs insurance premiums?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How are insurance premiums calculated?

View solution

Q. Why is it recommended to obtain multiple price quotes before selecting a policy?

View solution

Q. What factors are considered in calculating insurance premiums?

View solution

Q. What is the significance of commission rates in the insurance industry?

View solution

Q. Which distribution channel earns commission from the insurance company for the business they do?

View solution

Q. What distinguishes brokers from agents in the insurance industry?

View solution

Q. What is the role of bancassurance in the distribution of insurance products?

View solution

Q. How are direct marketing insurance products sold?

View solution

Q. Why is commission provided to distributors in the insurance industry?

View solution

Q. What forms can commission take in the insurance industry?

View solution

Q. How does an insurance company determine the number of agents needed for selling policies?

View solution

Q. Why is it important for an insurance company to consider the amount of commission when deciding premium rates?

View solution

Q. What does commission rate refer to in the insurance industry?

View solution

Q. How does the commission structure impact insurance premiums?

View solution

Q. What factors are considered in determining commission rates?

View solution

Q. Why is it important to have an appropriate commission structure?

View solution

Q. What does "claw-back terms" refer to in commission structures?

View solution

Q. What is the typical range for initial commission paid to distributors in the insurance industry?

View solution

Q. What is renewal commission?

View solution

Q. Why are distributors paid commission in the insurance industry?

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!

Avionics Engineering

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

Tissue Engineering

Delve into the cutting-edge field of Tissue Engineering with our specialized...

Railway Engineering

Embark on a journey through the world of railway systems with our Railway Engineering...

Biochemistry

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

Optical Communication

Explore the world of high-speed data transmission with our Optical Communication...

Total Quality Management

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

Highway Engineering

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

Irrigation Engineering

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

Data Interpretation

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