I am really worried about this one I had Profitability 1)-ve feature.Chgs fixed at outset.maybe insufficient to meet expenses 2) absence of surrender penalty,leading to early surrs,loss on oheads 3)Medical UX cost passed to client which is a cost saver.Customer has it at a hospital of his choice ,a concern 4)Reserving basis needs to be strengthened to reflect changes in SA on specified events MARKETING Clear defn of what qualifies for an increase in SA. Flex in prems good feature. Comm paid directly to intermediaries ,further incentive to push product. UW guidelines clearly defined at outset I checked the revision note answers and NONE of these made it there.Aernt we supposed to tailor our answers to specific product qns.All the points mentioned in the rev notes are related to UL products. Any last minute advice on how to tackle design related qns highly appreciated.
Hi vikky I believe many of the points you make would have scored. Although they are not using exactly the same words, they appear to me to be addressing the same issues as several points in the revision notes answers & the Examiners' Report. In particular, the charging structure leading to potential losses on early surrenders, the marketing appeal of ability to increase SA, and the flexibility all appear in the answers. Some points about the underwriting and commission arrangements also appear - it is possible there was room for some variation in what could be said about these things. Overall, I'd have no last minute advice for product design related questions other than to keep on doing what you appear to be doing - show knowledge of the core material & yes, keep tailoring it to the question specifics. Bear in mind that this was a "narrower" question than is often the case (focusing on just two of the design factors) and so was probably at the more difficult end of the range of questions on this topic. All best wishes for the exam Lynn
