Question

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

a.

Loss payments and loss expenses

b.

Agency commission and management expenses

c.

Expenses of management and profit margins

d.

All of the above

Answer: (d).All of the above Explanation:The final rate of premium includes various components, including loss payments, loss expenses, agency commission, expenses of management, margin for reserves for unexpected heavy losses, and margin for profits.

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

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