Pricing of Products I MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Pricing of Products I, 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 Pricing of Products I 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 Pricing of Products I mcq questions that explore various aspects of Pricing of Products I problems. Each MCQ is crafted to challenge your understanding of Pricing of Products I 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 Pricing of Products I MCQs are your pathway to success in mastering this essential IC 92 Actuarial Aspects of Product Development topic.

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Pricing of Products I MCQs | Page 13 of 13

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Q121.
Present value of premium is equal to which of the below?

a.

Present value of expenses minus present value of benefits

b.

Present value of benefits and expenses

c.

Present value of claims expected to be made in future

d.

Present value of investment earnings

Discuss
Answer: (b).Present value of benefits and expenses Explanation:Present value of premium is equal to present value of benefits and expenses.
Q122.
In pricing of insurance products, taxes are considered as an example of which of the following category of expenses?

a.

Administrative expenses

b.

Legal expenses

c.

Miscellaneous expenses

d.

Procurement expenses

Discuss
Answer: (c).Miscellaneous expenses Explanation:Taxes are an example of miscellaneous expenses.
Q123.
In which of the following cases would insurers insist on medical examination and reports?

a.

Where the sums assured are very high

b.

Where the age of assured is very high

c.

Both of the above

d.

None of the above

Discuss
Answer: (c).Both of the above Explanation:Both a and b are cases when insurers would insist on medical examination and reports.
Q124.
The creation of an image of trust and good market standing by the insurer depends upon which of the following factors?

a.

The level of financial assets of the insurer

b.

The level of training provided to the sales staff

c.

Rating provided by IRDA

d.

None of the above

Discuss
Answer: (a).The level of financial assets of the insurer Explanation:The creation of an image of trust and good market standing by the insurer depends upon the level of financial assets of the insurer.
Q125.
Medical expenses of a prospective insurance customer are borne by the insurers as

a.

It is a regulatory requirement

b.

Insurers are committed towards promoting best health practices

c.

Insurers are interested in assessing the chances that the life assured will not survive

d.

Health check-ups reduce the premium income for insurers

Discuss
Answer: (c).Insurers are interested in assessing the chances that the life assured will not survive Explanation:Medical expenses of a prospective insurance customer are borne by the insurers as insurers are interested in assessing the chances that the life assured will not survive.
Q126.
For insurers who have completed 10 years since registration as an insurer, the commission payment on premium receivable in the first year shall not exceed

a.

40%

b.

30%

c.

45%

d.

35%

Discuss
Answer: (d).35% Explanation:For insurers who have completed 10 years since registration as an insurer, the commission payment on premium receivable in the first year shall not exceed 35%.
Q127.
Under which type of payment of premium, the number of premium payments is more than one but limited to two or more annual premiums?

a.

Partial premium payments

b.

Regular premium payments

c.

Limited premium payments

d.

Neither of the above

Discuss
Answer: (c).Limited premium payments Explanation:Under limited premium payments, the number of premium payments is more than one but limited to two or more annual premiums.
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