Importance of Product Design MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Importance of Product Design, a fundamental topic in the field of IC 92 Actuarial Aspects of Product Development. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Importance of Product Design MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Importance of Product Design mcq questions that explore various aspects of Importance of Product Design problems. Each MCQ is crafted to challenge your understanding of Importance of Product Design principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace IC 92 Actuarial Aspects of Product Development tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Importance of Product Design MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

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Importance of Product Design MCQs | Page 8 of 10

Discover more Topics under IC 92 Actuarial Aspects of Product Development

Q71.
What is prohibited concerning product names under the regulations?

a.

Using names that accurately represent product benefits

b.

Using names that may mislead or misrepresent product benefits

c.

Using names that are overly descriptive

d.

Using names that are difficult to pronounce

Discuss
Answer: (b).Using names that may mislead or misrepresent product benefits Explanation:According to the regulations, misleading and misrepresenting the benefits through the name of the products is not allowed.
Q72.
What information must be clearly indicated regarding benefits offered on maturity, according to the regulations?

a.

Whether the product is protection oriented or savings oriented

b.

Whether the product is term or whole life insurance

c.

Whether the product offers health benefits

d.

Whether the product is suitable for high-risk individuals

Discuss
Answer: (a).Whether the product is protection oriented or savings oriented Explanation:The product literature must clearly indicate whether the product is protection oriented or savings oriented or a combination of the two regarding benefits offered on maturity, as per the regulations.
Q73.
What criteria determine whether a product can be classified as a savings product according to the regulations?

a.

The maturity benefit is a percentage of premiums paid

b.

The maturity benefit is higher than the premiums paid

c.

The maturity benefit is lower than the premiums paid

d.

The maturity benefit closely reflects the asset share

Discuss
Answer: (d).The maturity benefit closely reflects the asset share Explanation:According to the regulations, a product can be classified as a savings product if the maturity benefit closely reflects the asset share, which is the accumulation of monies in less monies out in respect of that policy.
Q74.
How are innovative products treated if they have not yet been approved by the Authority?

a.

They are automatically approved without conditions

b.

They are treated as non-compliant products

c.

They are considered innovative products subject to conditions stipulated in the regulations

d.

They are rejected outright

Discuss
Answer: (c).They are considered innovative products subject to conditions stipulated in the regulations Explanation:Innovative products that have not yet been approved by the Authority are considered as innovative products subject to conditions stipulated in the regulations.
Q75.
What concerns do policyholders typically have regarding insurance contracts?

a.

Whether the insurers are financially capable of meeting the claim commitments

b.

Whether the insurers offer discounts on premiums

c.

Whether the insurers provide investment advice

d.

Whether the insurers offer free gifts with insurance purchases

Discuss
Answer: (a).Whether the insurers are financially capable of meeting the claim commitments Explanation:Policyholders are concerned about whether insurers are financially capable of meeting the claim commitments.
Q76.
What type of education do policyholders expect before and after purchasing insurance contracts?

a.

Marketing strategies

b.

Salient features of products

c.

Distribution channels

d.

Regulatory compliance

Discuss
Answer: (b).Salient features of products Explanation:Policyholders expect education regarding the salient features of products before and after purchasing insurance contracts.
Q77.
How do distributors earn remuneration in the insurance business?

a.

Through government subsidies

b.

Through salary paid by the insurance companies

c.

Through commissions for handling customers before and after sales

d.

Through customer fees for consultation services

Discuss
Answer: (c).Through commissions for handling customers before and after sales Explanation:Distributors earn remuneration through commissions for handling customers before and after sales in the insurance business.
Q78.
What ethical aspect of business do distributors need to adhere to when selling insurance products?

a.

Providing false information to customers

b.

Sharing their commission with customers

c.

Giving incorrect advice to customers

d.

Being honest in selling insurance products

Discuss
Answer: (d).Being honest in selling insurance products Explanation:Distributors need to be honest in selling insurance products as it is an ethical aspect of business.
Q79.
What role do insurers' associations play in the insurance industry?

a.

Marketing insurance products

b.

Protecting the interests of the insurance industry

c.

Providing insurance advice to individual clients

d.

Settling insurance claims for policyholders

Discuss
Answer: (b).Protecting the interests of the insurance industry Explanation:Insurers' associations focus on protecting the interests of the insurance industry through market discipline and ethics.
Q80.
What is the primary focus of consumer forums in the insurance industry?

a.

Selling insurance products

b.

Protecting the interests of insurance companies

c.

Resolving complaints related to settlement of claims and customer services

d.

Providing training and education to distributors

Discuss
Answer: (c).Resolving complaints related to settlement of claims and customer services Explanation:Consumer forums protect the interests of the beneficiaries against insurer's actions in settlement of claims and other customer services related issues.
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