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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Q. What is pure premium?

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Q. What is the purpose of a deductible in insurance policies?

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Q. In which types of insurance policies are deductibles typically used?

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Q. How can an insured potentially lower their insurance premium?

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Q. Why might health insurers require a deductible in their policies?

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Q. In what situations might insurers use deductibles as a risk management strategy?

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Q. What is a franchise in insurance terms?

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