Question

What is the primary purpose of periodic valuation of assets and liabilities in a life insurance company?

a.

To determine the company's marketing strategy

b.

To assess the financial state of the company and determine its solvency

c.

To set premium rates for new policies

d.

To calculate the salaries of company executives

Posted under IC38 Life Insurance Agent Exam

Answer: (b).To assess the financial state of the company and determine its solvency Explanation:Periodic valuation of assets and liabilities in a life insurance company is primarily done to assess the company's financial state and determine whether it is solvent or insolvent.

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Q. What is the primary purpose of periodic valuation of assets and liabilities in a life insurance company?
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