Regulatory restrictions on premium rates or charges, that can be used for some types of contracts for example certain elements of the premium rate basis such as mortality and interest might be controlled. Would the FSB advise the company on what mortality table and interest rates to use?
I'm not sure who you mean by the FSB. But in theory, yes the regulator might specify the mortality table or interest rate to use. However, in many parts of the world, eg the UK, mortality tables and interest rates are not specified. A common restriction is a 1.5% limit on the annual management charge that can be taken from certain unit-linked policies in the UK. The exact details are beyond the course. Mark
I'm afraid I don't know the specific rules in South Africa. ST2 is non-country specific so you don't need to know the exact rules. You may instead be doing the South African F102 exam. The course notes make no mention of the FSB in this course either, so again you would not need to know the rules. Mark
I hope you are practising lots of past papers - it's what you need to do to maximise the chance of a pass - I wouldn't worry quite so much about some of the fine detail - generating marks in the exam is what you should be worrying about now.
Thanks for your advise. I have been through lots of past papers. Some of my questions thus far were based on solutions in the past papers. Sometimes parts of the solutions keep me from going forward.
