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

Q. What are some of the services for which distributors have to provide after-sales support?

View solution

Q. What is a key factor influencing the determination of commission rates for insurance distributors?

View solution

Q. How do insurance companies typically adjust commission rates based on the complexity of insurance products?

View solution

Q. Why is it important for insurance companies to consider the commission rates offered by competitors?

View solution

Q. What might happen if an insurance company offers significantly lower commission rates than its competitors?

View solution

Q. How do commission rates vary between single premium and regular premium products?

View solution

Q. How do higher commission rates impact premium and sales volume in the insurance industry?

View solution

Q. Why is it important for actuaries to strike a balance between distributor satisfaction and policyholder value for money?

View solution

Q. How does the desired profitability target influence commission rates?

View solution