Q. Why is careful underwriting and risk classification essential in insurance?

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Q. What is the purpose of underwriting when it comes to classifying risks?

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Q. How are the objectives of underwriting achieved?

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Q. Why does every insurance product need to be filed with IRDAI for approval before being offered for sale?

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Q. What does the regulator ask the insurer to commit to when filing an insurance product?

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Q. What should the insurer plan for when introducing a product into the market?

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Q. What is the main purpose of ratemaking in insurance?

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Q. How are rates and premiums related in insurance?

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Q. What is the principle referred to as 'the law of large numbers' in insurance?

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Q. How can an insurance company ensure that the pool is sufficient to compensate for incurred losses?

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Q. What does the 'law of large numbers' principle mean for insurance companies?

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Q. How does the 'law of large numbers' relate to the predictability of results in insurance?

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Q. What does the 'law of large numbers' principle help insurance companies achieve?

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Q. Identify the two factors that affect insurance ratemaking.

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Q. What is the "pure premium" in insurance ratemaking?

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Q. How is the "pure premium" calculated?

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Q. What does "Burning Cost" refer to in the context of insurance premium?

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Q. What components make up the final rate of premium in insurance?

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Q. Why is it necessary to include a margin for profit in the insurance premium?

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Q. Which rating factors are used to ensure that insurance rates are not unfairly discriminatory?

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