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 5 of 13

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Q41.
Which of the following regulations were issued by the regulator in India in the year 2013?

a.

Linked product regulations

b.

Non-linked product regulations

c.

Both a and b

d.

Neither a nor b

Discuss
Answer: (c).Both a and b Explanation:In India, two product regulations, Linked product regulations and Non-linked product regulations, were issued by the regulator in the year 2013.
Q42.
How are participating products classified in terms of bonus accruals?

a.

Regular bonus only

b.

Interim bonus only

c.

Terminal bonus only

d.

All of the above

Discuss
Answer: (d).All of the above Explanation:Participating products are classified into par products, and bonus accruals during the term include regular bonus, interim bonus, and terminal bonus.
Q43.
Which of the following is NOT a category under Non-linked variable insurance?

a.

Individual Non-par

b.

Group Savings Non-Par

c.

Individual Par

d.

Fund based Group Par

Discuss
Answer: (c).Individual Par Explanation:There are various categories under Non-linked variable insurance, including Individual Non-par, Group Savings Non-Par, and Fund based Group Non-par, but "Individual Par" is not.
Q44.
What is the significance of the regulations regarding product pricing?

a.

They impact the product structure classification

b.

They influence the offering of linked and non-linked variable insurance products

c.

Both a and b

d.

Neither a nor b

Discuss
Answer: (c).Both a and b Explanation:The regulations impact product pricing by influencing the classification of product structures and the offering of linked and non-linked variable insurance products.
Q45.
What type of products fall under variable insurance products?

a.

Products with regular interest rate credits

b.

Products with irregular interest rate credits

c.

Products with fixed interest rate credits

d.

Products without interest rate credits

Discuss
Answer: (a).Products with regular interest rate credits Explanation:Products where benefits depend on regular interest rate credits fall under variable insurance products.
Q46.
How are non-linked variable insurance products different from linked variable insurance products?

a.

Non-linked products have benefits linked to external indices, while linked products do not.

b.

Non-linked products offer benefits dependent on external indices, while linked products do not.

c.

Non-linked products have benefits not dependent on external indices, while linked products do.

d.

Non-linked products offer benefits independent of external indices, while linked products do not.

Discuss
Answer: (c).Non-linked products have benefits not dependent on external indices, while linked products do. Explanation:In non-linked variable insurance products, benefits accrued are not linked to any index or benchmark, whereas in linked variable insurance products, benefits are partially or wholly dependent on an external index or benchmark.
Q47.
What is the minimum frequency for the accrual of additional interest rates or bonus?

a.

Monthly

b.

Half-yearly

c.

Quarterly

d.

Annually

Discuss
Answer: (c).Quarterly Explanation:For all modes of premium payment, the non-zero positive additional interest rate to be credited should not be less than quarterly frequency.
Q48.
When are bonuses with respect to par products declared?

a.

Immediately after the policy is issued

b.

At the time of maturity of the policy

c.

Once a year after the annual actuarial valuation

d.

Biannually

Discuss
Answer: (c).Once a year after the annual actuarial valuation Explanation:Bonuses with respect to par products are declared once a year immediately after the annual actuarial valuation.
Q49.
What does the policy account value represent in a variable non-linked insurance policy?

a.

Premium payments only

b.

Accruals to the policyholder

c.

Charges deducted from the premium

d.

Additional interest rates only

Discuss
Answer: (b).Accruals to the policyholder Explanation:The policy account value in a variable non-linked insurance policy represents the accrual to the policyholder.
Q50.
How often is the shadow policy account value maintained?

a.

Weekly

b.

Monthly

c.

Daily

d.

Annually

Discuss
Answer: (c).Daily Explanation:The shadow policy account value shall be maintained on a daily basis.
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