2016 · Q103
Which of the following are the typical differences between private insurance programmes and the social insurance programmes?
- 1Adequacy versus Equity
- 2Voluntary versus Mandatory participation
- 3Contractual versus Statutory rights
- 4Funding
Select the correct answer using the codes given below:
General Accounting Principles, Auditing and InsuranceInsurance
- A1, 2 and 3 only
- B1, 2 and 4 only
- C3 and 4 only
- D1, 2, 3 and 4
Explanation
Private and social insurance differ on all four counts: adequacy of benefits versus actuarial equity (1), voluntary versus mandatory participation (2), contractual versus statutory rights (3), and funding method — fully funded private schemes versus pay-as-you-go or socialized funding (4). Hence all four — option (D).