Question

Which method provides a more accurate calculation of the net portfolio premium?

a.

Fixed percentage calculation

b.

Pro-rata calculation

c.

Eighth system calculation

d.

Twenty-fourth system calculation

Answer: (d).Twenty-fourth system calculation Explanation:The twenty-fourth system calculation provides a more accurate calculation of the net portfolio premium compared to the fixed percentage calculation.

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Q. Which method provides a more accurate calculation of the net portfolio premium?

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