Question

What is the long-term benefit of lower commission rates, lower premiums, and higher sales?

a.

Increased profitability for the company

b.

Greater satisfaction for policyholders

c.

Higher remuneration for distributors

d.

Reduced competition in the market

Posted under IC 92 Actuarial Aspects of Product Development

Answer: (a).Increased profitability for the company Explanation:Lower commission rates, lower premiums, and higher sales can lead to increased profitability for the company in the long term by attracting more policyholders and reducing expenses.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. What is the long-term benefit of lower commission rates, lower premiums, and higher sales?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How do regulations impact commission rates in the insurance industry?

View solution

Q. What is the purpose of claw-back terms in commission agreements?

View solution

Q. How are persistency targets related to commission structure?

View solution

Q. How can insurers use commission structure to control withdrawal risk?

View solution

Q. What is the purpose of a band-wise commission structure?

View solution

Q. How are insurance products typically distributed to customers?

View solution

Q. What is the purpose of commission or remuneration in the insurance industry?

View solution

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

View solution

Q. What does the commission rate represent in the insurance business?

View solution

Q. Why do insurance companies often adopt a conservative approach in fixing commission rates?

View solution

Q. What factors influence the determination of commission rates in the insurance industry?

View solution

Q. In which of the following ways can an insurance agent receive his commission?

View solution

Q. Which of the following is not a factor that is used to arrive at the commission rate?

View solution

Q. Insurance companies follow the ___________________ approach while fixing the commission rate.

View solution

Q. When is the claw-back of commission imposed?

View solution

Q. In which of the following cases will the commission rate be lower?

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!

IC22 Life Insurance Underwriting

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

Mechanics of Materials

Unlock the principles of Mechanics of Materials with our specialized category. Dive...

International Relations

Navigate the complex world of International Relations with our dedicated category....

Highway Engineering

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

DC Machines

Dive into the fundamentals of direct current (DC) machines with our specialized...

Genetic Engineering

Unlock the potential of Genetic Engineering with our dedicated category. Explore gene...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....

Marketing and Marketing Management

Uncover the strategies and tactics of marketing with our Marketing and Marketing...

Heat Transfer

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