Question
a.
The cost of claims paid to policyholders
b.
The pure premium calculated without any additional costs
c.
The expenses associated with procuring new insurance business
d.
The total premium collected by the insurer
Posted under IC38 Life Insurance Agent Exam
Interact with the Community - Share Your Thoughts
Uncertain About the Answer? Seek Clarification Here.
Understand the Explanation? Include it Here.
Q. What does "Burning Cost" refer to in the context of insurance premium?
Similar Questions
Explore Relevant Multiple Choice Questions (MCQs)
Q. What components make up the final rate of premium in insurance?
View solution
Q. Why is it necessary to include a margin for profit in the insurance premium?
View solution
Q. Which rating factors are used to ensure that insurance rates are not unfairly discriminatory?
View solution
Q. What is pure premium?
View solution
Q. What is the purpose of a deductible in insurance policies?
View solution
Q. In which types of insurance policies are deductibles typically used?
View solution
Q. How can an insured potentially lower their insurance premium?
View solution
Q. Why might health insurers require a deductible in their policies?
View solution
Q. In what situations might insurers use deductibles as a risk management strategy?
View solution
Q. What is a franchise in insurance terms?
View solution
Q. How does a franchise work in insurance claims?
View solution
Q. What happens when a claim exceeds the franchise limit?
View solution
Q. What are rating factors used for in insurance?
View solution
Q. How does an insurer use rating factors to determine rates?
View solution
Recommended Subjects
Are you eager to expand your knowledge beyond IC38 Life Insurance Agent Exam? We've handpicked a range of related categories that you might find intriguing.
Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!
