Group insurance and retirement benefits — group schemes, gratuity, superannuation and pension products.
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Answer: D. Projected Unit method and Current Unit method
Accrued benefits methods, which fund for a target level of cover of benefits accrued to date, in other words target the Actuarial Liability (AL), includes i. Projected Unit method (PUM) ii. Current Unit method (CUM)
Answer: C. Is less than the overall increase in mortality rates
In theory, the FCL could be set at the point where the cost of asking for evidence of insurability is less than the overall increase in mortality rates. This is difficult to determine in practice since the higher the FCL, the more there is potential for selection against the insurer.
Answer: D. settlement occurs when a plan is permanently settled and plan ceases to exist
A settlement occurs when a plan is permanently settled, say, by paying lump sum amount and plan ceases to exist. Loss or gain arising from curtailments or settlements is to be recognised in P / L immediately.
Answer: E. Both (b) and (d)
The reinsurance may itself be participating, independent of whether the underlying groups are retrospectively rated. Normally, the reinsurance profit sharing arrangement with the insurer includes all reinsured lives of all groups covered by a treaty, except for facultative underwritten lives. The larger groups may have different reinsurance arrangement.
Answer: E. Twenty
Employees Provident Fund Scheme (EPF Scheme) 1952 1. Subject to the provisions contained in section 16, this Act applies to the following entities: a) Every establishment which is a factory engaged in any industry specified in Schedule I and in which twenty or more persons are employed and b) Any other establishment employing twenty or more persons or class of such establishments which the Central Government may, by notification in the Official Gazette, specify, in this behalf. Etc.
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