• We are pleased to announce that the winner of our Feedback Prize Draw for the Winter 2024-25 session and winning £150 of gift vouchers is Zhao Liang Tay. Congratulations to Zhao Liang. If you fancy winning £150 worth of gift vouchers (from a major UK store) for the Summer 2025 exam sitting for just a few minutes of your time throughout the session, please see our website at https://www.acted.co.uk/further-info.html?pat=feedback#feedback-prize for more information on how you can make sure your name is included in the draw at the end of the session.
  • Please be advised that the SP1, SP5 and SP7 X1 deadline is the 14th July and not the 17th June as first stated. Please accept out apologies for any confusion caused.

Sept 2018 Q1

S

Sinead_D

Member
Hi, This question asks:
'Suggest possible reasons why the payout from a with profits policy might be different from the policy’s asset share.'

In the examiner's report it says that MVAs are not applicable here. Why is this? I understand that MVAs apply only on accumulating with-profits contracts but the question doesn't state whether the policy is accumulating or not, just that its with profits.

Thanks
 
Hi Sinead

Good question! I think the answer to this is that an MVA wouldn’t be a reason to explain why a with-profits payout might be different from the policy's asset share (as applying an MVA will bring payout closer to asset share). I don’t think that the examiners are saying that an MVA couldn’t actually be applied to the WP policy.

Hope this clears it up
Thanks
Lynn
 
You must log in or register to reply here.
Back
Top